CUSMA carveout preserved in Trump's 10% global tariff

The White House said goods compliant with the Canada‑U.S.‑Mexico agreement (CUSMA) are exempt from President Trump's newly announced 10 per cent global tariff; the move followed a U.S. Supreme Court ruling that struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

U.S. President Donald Trump announced an executive order imposing a 10 per cent global tariff after the Supreme Court ruled that his previous use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs was unlawful. The White House said the new tariff will be applied under Section 122 of the 1974 Trade Act and that goods compliant with the Canada‑U.S.‑Mexico Agreement (CUSMA) will remain exempt. Separate, sector‑specific duties such as those applied under Section 232 for steel, aluminum and some autos remain in force. Officials said tariffs under Section 122 can last for a limited period unless extended by Congress. Key facts: - The Supreme Court struck down tariffs imposed under IEEPA, limiting that route for broad tariff action. - The administration signed an executive order to impose a 10 per cent global tariff under Section 122 of the 1974 Trade Act. - The White House announced that CUSMA‑compliant goods are exempt from the new global tariff. - Sectoral tariffs under a separate authority (Section 232) remain active and are not removed by the Supreme Court decision. - Tariffs imposed under Section 122 are reported to last for about 150 days unless Congress votes to extend them. Summary: Most Canadian exports will remain exempt from the new 10 per cent global tariff because of the CUSMA carveout, while separate sectoral duties on steel, aluminum and some autos continue to apply. The immediate legal change was the Supreme Court ruling against the IEEPA route; the new tariff action is limited in duration under Section 122 unless Congress extends it, and further trade discussions and the scheduled CUSMA review remain part of the broader process.