Trump's 50% Canada tariffs face legal test under 1930 law
Why it matters: The rarely used Section 338 power has never been tested in court and could reshape presidential tariff authority.
President Donald Trump's new 50% tariffs on $20 billion in Canadian imports are raising legal questions because they rest on a 96-year-old law no president had previously used. Trump invoked Section 338 of the Tariff Act of 1930, which allows tariffs of up to 50% on countries judged to discriminate against U.S. commerce. The administration used the provision to target Canada over alleged discrimination against U.S. dairy, auto and alcoholic beverage exports. Ottawa answered with dollar-for-dollar retaliation. Trade lawyers say the statute has never been litigated, leaving courts little guidance on whether the tariffs would survive a challenge or whether later trade laws have effectively overtaken the Depression-era measure.