Trump's trade war with Canada is increasingly reliant on a disputed 95-year-old tariff law - Yahoo Finance
President Trump is utilizing a 95-year-old tariff law, the Smoot-Hawley Tariff Act, to impose trade restrictions on Canadian goods. Legal experts argue the statute is outdated and potentially superseded by modern trade laws, raising questions about the legality of the administration's actions.
Why it matters
The use of a controversial historical law to escalate trade tensions could trigger significant economic instability and lead to protracted legal battles over executive authority.
Trump's trade war with Canada is increasingly reliant on a disputed 95-year-old tariff law Ben Werschkul · Washington Correspondent Wed, September 9, 2026 at 11:58 AM EDT 4 min read President Trump is escalating his trade war with Canada, doubling down on a 95-year-old law to potentially ban Canadian dairy products, most alcoholic beverages, and motorcycles .
"It seemed inevitable that Trump would need to have the last word," Capital Economics said in a note, "and the administration has responded by leaning on another part of Section 338."
That's a provision from the Tariff Act of 1930, which was signed by President Herbert Hoover. Trump has cited that authority for his latest actions, though the law is often cited as the literal textbook example of tariffs gone wrong .
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