U.S. tariffs still affecting Canadian industries after court ruling

The U.S. Supreme Court struck down the administration’s use of the International Emergency Economic Powers Act to impose tariffs, ending fentanyl-related duties on Canada; the White House said it will pursue a 10 per cent global tariff under Section 122 that would last 150 days unless Congress approves it.

The U.S. Supreme Court found that the administration could not rely on the International Emergency Economic Powers Act to impose the recent tariff measure. That decision removes the legal basis for the fentanyl-related duties on Canada. The administration announced it will try to use Section 122 to impose a 10 per cent global tariff that can remain for 150 days without Congressional approval. It is not yet determined whether any new levy would be added on top of existing industry-specific tariffs. Key facts: - The Supreme Court struck down the use of the International Emergency Economic Powers Act for the recent tariffs. - The fentanyl-related duties on Canada were ended as a result of the court decision. - The White House said it will seek a 10 per cent global tariff under Section 122. - A Section 122 tariff can remain for 150 days unless Congress approves it. - Existing tariffs imposed under other authorities, such as Section 232, remain in place and the stacking question is unclear. Summary: The court ruling removes IEEPA as the legal basis for the recent tariff action and ends the fentanyl-related duties on Canada. The administration’s stated move to use Section 122 would create a temporary 10 per cent global tariff unless Congress approves a longer term. Whether that new measure will be layered on top of existing Section 232 tariffs is undetermined at this time.