President Donald Trump is turning to Section 338 of the Tariff Act of 1930 to impose possible 50% tariffs on certain Canadian imports after the Supreme Court blocked his previous attempt to use emergency powers under the International Emergency Economic Powers Act to expand his tariff program, Bloomberg reports.
Section 338 allows the president to levy tariffs of up to 50% on imports from countries that discriminate against U.S. commerce, with fewer procedural requirements than other trade laws, making it a faster option for imposing duties.
Trump says the tariffs are a response to what he describes as unfair Canadian treatment of U.S. goods, particularly dairy products, alcohol and automobiles. Proposed targets include plywood, hockey equipment, ice skates, wine and milk products, including some goods previously covered by duty-free rules under the US-Mexico-Canada Agreement.
The move reflects ongoing trade tensions between the two countries, including Canadian restrictions on U.S. alcohol sales, retaliatory auto tariffs and disputes over dairy access.
The administration’s use of Section 338 is expected to face legal challenges. Critics may argue that Canada’s policies do not meet the law’s definition of discriminatory treatment, that the tariffs are disproportionate to the alleged harm or that additional procedural steps are required.
Legal experts note that recent court decisions limiting Trump’s tariff authority under other laws may make judges more willing to scrutinize broad presidential trade powers.
