Trump's untested new tariffs on Canada raise big legal questions
President Donald Trump has invoked a 96-year-old statute, Section 338 of the Tariff Act of 1930, to impose a 50% tariff on Canadian imports. Legal experts are questioning the validity of using this Depression-era law, which has never been tested in court.
Why it matters
The use of obscure, untested trade laws could trigger significant economic instability and legal battles between the U.S. and its major trading partners.
<p>In firing up a trade war with Canada, American president Donald Trump turned to a 96-year-old statute so obscure that many trade lawyers didn’t even know it was still on the books.</p> <p>A week ago, Trump invoked Section 338 of the Tariff Act of 1930 to slap a 50% tax on US$20 billion worth of Canadian imports. </p> <p>The move prompted dollar-for-dollar retaliation from Ottawa and strained already-tense relations between the neighbours and longtime allies.</p> <p>The president’s Section 338 tariff authority has never been used, let alone tested in court.
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