U.S. tariffs ruling not a clear win for Canadian businesses

The U.S. Supreme Court struck down a legal method used to impose tariffs, but sector-specific duties on metals, lumber and automobiles remain and uncertainty persists for Canadian businesses.

The U.S. Supreme Court struck down a key legal method used by the U.S. president to impose tariffs, the article reports. That decision was seen as offering relief to some trading partners. At the same time, specific tariffs on metals, lumber and automobiles remain in force. Experts say Canadian businesses continue to face uncertainty while trade relations and agreements are discussed. Key points: - The Supreme Court ruling removed a method used to impose broad tariffs, as reported. - The decision does not affect sector-specific tariffs on metals, lumber and automobiles, and the reported 35 per cent duties would not apply to goods compliant with the Canada-U.S.-Mexico trade agreement (CUSMA). - CIBC chief economist Avery Shenfeld said the ruling provides relief to competitors and reduces the risk that the 35 per cent measure could be used if the U.S. withdrew from CUSMA; Dennis Darby of Canadian Manufacturers & Exporters said the ruling is welcome but that uncertainty continues and he favours a productive renewal of CUSMA. Summary: The ruling narrows one legal route for broad tariff imposition but leaves existing sectoral measures in place, so direct benefits for Canadian firms are limited. Experts noted some immediate relief for competitors and stressed ongoing uncertainty tied to trade policy and CUSMA's future. Undetermined at this time.