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The main tariffs hitting Canada’s industries remain in place and will likely only be lifted with a negotiated settlement

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The United States Supreme Court said on Friday that Donald Trump’s attempt to impose tariffs on countries around the world “falls short” of what the law allows.

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While many around the world were celebrating, in reality, the ruling means little for Canada.

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America’s highest court ruled the tariffs Trump imposed on much of the world under the International Emergency Economic Powers Act (IEEPA) were unconstitutional. The main tariffs hitting Canada’s industries such as steel, aluminum, autos and lumber are levied under different powers, under different laws and weren’t part of this ruling.

That means the 25% tariff on assembled vehicles, the 50% tariffs on steel and aluminum and the 45% tariff and duty charges on softwood lumber remain in place.

The reaction from Canadian politicians to the ruling was both celebratory and muted.

Dominic LeBlanc, the cabinet minister responsible for Canada-U.S. trade in the Carney government said the ruling “strengthens Canada’s position that the tariffs imposed by the United States under the IEEPA are unjustified.”

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Great, that and $1.83 will get you a coffee at the Timmy’s down the street.

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None of this changes the fact that the major tariffs hurting Canada’s economy remain in place.

Ontario Premier Doug Ford called the ruling “another important victory” while saying the fight against the other tariffs needs to continue.

The truth is, very few Canadian goods were hit by the IEEPA tariffs imposed by Trump. With at least 85% of Canadian exports to the U.S. covered by CUSMA, the IEEPA tariffs the court struck down applied to very few products.

Trump’s ability to impose sectoral tariffs on steel, aluminum, autos and lumber remains unchallenged. The only way we will get around those tariffs in the foreseeable future is with a negotiated settlement, not through a court challenge.

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“We hold that IEEPA (the International Emergency Economic Powers Act) does not authorize the president to impose tariffs,” the decision by Chief Justice John Roberts said.

Joining him in the 6-3 decision were two of Trump’s three Supreme Court appointments, Justice Amy Coney Barrett and Justice Neil Gorsuch.

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Speaking to reporters after the decision, Trump made it clear he was disappointed.

“Their decision is incorrect,” Trump said. “But it doesn’t matter because we have very powerful alternatives.”

For months, the Trump administration has been warning that if the court did strike down these tariffs that they would find other legal avenues to impose them.

“Today, I will sign an order to impose a 10% global tariff under Section 122, over and above our normal tariffs already being charged,” Trump said.

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His imposition of these tariffs un the 1974 Trade Act can take effect for 150 days unless Congress votes to extend them and pass them into law. It will be an interesting few months in Washington to see if support can be found for a 10% global tariff in the House of Representatives and Senate.

Regardless, the 25% to 50% tariffs on main Canadian industries will remain unless and until trade negotiations see them lifted.

“Although Canada has concluded the best trade agreement with the United States among all its trading partners, we recognize that there is still much to be done to support Canadian businesses and workers who continue to be affected by the tariffs imposed under Section 232 on the steel, aluminum, and automotive sectors,” Minister LeBlanc said.

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A good place to start might be having LeBlanc put the same effort into securing a deal in Washington as he has put into Mexico City. Last week LeBlanc led a 370-person delegation of politicians, bureaucrats and business leaders to Mexico. No similar effort has been put into Washington.

Too many Canadians had pinned their hopes on this Supreme Court case doing away with Donald Trump’s tariffs. Today they are disappointed as the Canadian tariffs remain in place.

blilley@postmedia.com

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