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Trump's New Tariffs on Canada Rest on Untested 1930s Law, Legal Experts Say
Unlike the levies struck down by the Supreme Court, the 50 per cent duties taking effect Aug. 19 invoke a Depression-era statute never before used by a U.S. president
Published: July 28, 2026
President Donald Trump's newest round of 50 per cent tariffs on Canadian goods relies on Section 338 of the 1930 Tariff Act, a provision aimed at foreign "discrimination" against U.S. trade that no American president has invoked before. Trade law experts say the untested nature of the statute could eventually draw a court challenge from a U.S. importer forced to pay the higher duties, though not from Canada itself.
The proclamations accuse Canada of disadvantaging American exporters in three ways: barring U.S. alcohol from store shelves in eight provinces, limiting access for U.S. dairy producers, and capping certain vehicle imports. Legal analysts note that Section 338 has fewer procedural hurdles than the law the Supreme Court struck down earlier this year, meaning Trump may be on firmer legal footing this time even if Canada argues the measures were a justified response to his own trade war.
Some experts believe the Aug. 19 deadline functions mainly as a negotiating tactic, with one trade law professor suggesting affected importers may be reluctant to spend money fighting the tariffs in court if a deal appears within reach. Canadian officials, including B.C. Premier David Eby, have signaled no plan to reverse provincial alcohol bans regardless of the looming duties.
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