Supreme Court to Decide Fate of Tariffs on Canadian Goods

The appeals court allowed all tariffs to remain in place until Oct. 14 so the government has a chance to appeal to latest ruling, preparations for which are under way, U.S. Treasury Secretary Scott Bessent told Reuters. If the U.S. Supreme Court refuses to hear the appeal or otherwise upholds the federal circuit decision, then the President’s IEEPA tariffs, including the 35 per cent tariff on most Canadian goods, would likely be eliminated, said Pellerin.

Impact on Canadian Exporters

“This would benefit Canadian exporters given that they still ship goods that are subject to that 35 per cent tariff. However, the impact would be quite muted because most Canadian exporters do not pay that 35 per cent,” he said, noting that most qualify for exemption under the Canada-U.S.-Mexico Trade Agreement. But that doesn’t mean the pain is over, as sector-specific tariffs don’t qualify for such exemptions and aren’t affected by the latest court ruling. “The more damaging tariffs imposed by the United States on Canada, including the steel, aluminum and autos tariffs, would remain,” he said.

Next Steps

With the fate of the tariffs hanging in the balance, Canadian exporters are anxiously awaiting the Supreme Court’s decision. If the tariffs are eliminated, it could provide some relief for certain sectors, but the battle is far from over as other tariffs still remain in place.