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Trump invokes a 1996 law never used to tax Canada, experts say legal challenges will be difficult

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Golden Finance reports that Trump is imposing new tariffs on goods exported from Canada, based on a legal provision that has never been used since the 1930 legislation. The new tariffs are based on Section 338 of the U.S. Tariff Act of 1930, targeting “discriminatory measures implemented by foreign countries,” meaning any actions taken by trade partners that cause “U.S. commerce to be at a disadvantage.” Simon Lester, a researcher at Rice University, said Trump’s executive notice has already clearly stated the basis for finding that Canada has engaged in such conduct, “and successfully challenging it in U.S. courts will be quite difficult.” The executive notice states that Canada mainly puts the United States at a disadvantage through three measures: banning the import and sale of U.S. alcohol products in eight provinces in Canada; restricting U.S. dairy products from entering the Canadian market; and restricting some U.S. auto exports to Canada. According to the executive notice, the new tariffs will officially take effect on August 19. However, Nicolas Lamp, an associate professor of international law at Queen’s University, believes these tariffs are more like a negotiating strategy, aimed at weakening Canada’s negotiating leverage. (Jin 10)
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