Trump's 50% Canada tariffs face legal test under 1930 trade law
Why it matters: The rarely used Section 338 authority has never been tested in court, adding uncertainty to a trade fight already met by Canadian retaliation.
President Donald Trump's new 50% tariffs on some Canadian imports are drawing legal scrutiny because they rely on Section 338 of the Tariff Act of 1930, a power no president had previously used. The measure applies to $20 billion in Canadian goods and came after trade talks with Canada broke down. Prime Minister Mark Carney responded with dollar-for-dollar tariffs on U.S. exports. Trade lawyers told AP the Depression-era statute is largely untested and may conflict with later trade laws that narrowed presidential tariff powers. The dispute has deepened strains between the United States and Canada, close allies whose economies are tightly linked.