The Trump administration is broadening its trade investigations to encompass 60 countries, including Canada, in a move designed to solidify the President's tariff policies. This development follows a recent U. S. Supreme Court decision that struck down President Trump's preferred tariff tool, which he had previously used to impose duties related to "Liberation Day" and fentanyl on Canada, Mexico, and China.
In response to the Supreme Court's ruling, President Trump has invoked Section 122 of the Trade Act of 1974, implementing a 10 percent levy worldwide. However, this measure is temporary, set to expire after 150 days unless it receives Congressional approval. The United States Trade Representative (USTR) will examine whether the targeted countries have policies that are "unreasonable or discriminatory and burden or restrict U. S. commerce".
These investigations are being conducted under Section 301 of the Trade Act of 1974. U. S. Trade Representative Jamieson Greer stated the U. S. intends to move quickly, aiming for resolution within months. If unfair trading practices like subsidies or forced labor are discovered, the USTR will quantify the harm to U. S. commerce and seek resolution with the respective country.
Canada is already dealing with separate Section 232 tariffs imposed by the U. S. on specific industries such as steel, aluminum, automobiles, and cabinetry. These investigations and tariffs contribute to ongoing trade tensions between Canada and the U. S., raising concerns among Canadian businesses and policymakers. Formal trade talks between Canada and the U. S. are expected to begin in 2026 to review the USMCA agreement.
