President Donald Trump has announced a new 10% global tariff, effective immediately, after the Supreme Court ruled against his previous tariff measures. Speaking from the White House, Trump blasted the court's decision, calling it a "disgrace" and an act that emboldened him to enact "very powerful alternatives". The Supreme Court had struck down Trump's sweeping "reciprocal" import duties in a 6-3 ruling, arguing that the International Emergency Economic Powers Act (IEEPA) did not authorize the president to impose tariffs without congressional approval.
The new tariff will be imposed under Section 122 of the Trade Act of 1974. This section allows the president to impose a baseline tariff of up to 15% for no more than 150 days to address "large and serious" balance-of-payments deficits. While existing tariffs imposed under other trade authorities remain in effect, this new measure signals an escalation in Trump's trade agenda despite the court's rebuke.
The announcement has sparked concerns in Canada, a major trading partner of the United States. While Canadian Minister of Trade, Dominic LeBlanc, stated that the initial ruling "reinforces Canada's position that the IEEPA tariffs imposed by the United States are unjustified," the new tariff announcement casts a shadow over future trade relations. Ontario Premier Doug Ford called the Supreme Court decision "an important victory," but cautioned that "the battle isn't over yet" and urged continued vigilance against tariffs on key sectors like auto, steel, and aluminum. Canada, the United States, and Mexico are scheduled to engage in a review of the USMCA in July 2026.
The Canadian Chamber of Commerce has adopted a more cautious approach, stating that the Supreme Court’s decision "is a legal ruling, not a reset of U. S. trade policy". With the USMCA review on the horizon, Canada must navigate these complex trade dynamics to protect its economic interests.
