Trump's 50% Canada tariffs face fresh legal test under 1930 law
Why it matters: The rarely used Section 338 authority has never been tested in court, leaving the new levies vulnerable to challenge.
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 presidential power that had never been used before. The measure applies to about $20 billion in Canadian goods and has already prompted Ottawa to retaliate with matching tariffs on U.S. exports, deepening a trade fight with one of Washington's closest allies. Lawyers told the AP the statute is largely untested and may have been overtaken by more recent trade laws. Trump used the Depression-era provision after accusing Canada of discriminating against U.S. dairy, auto and alcoholic beverage exports.