#TrumpCanadaTariffsOverturned 📌 #TrumpCanadaTariffsOverturned — Explained
In early 2025–2026, U.S. trade policy featured a major dispute over tariffs (import taxes) that President Donald Trump imposed on goods coming from Canada. These tariffs, which reached as high as 35% on many Canadian imports, were justified by the Trump administration on the basis of “national emergency” powers tied to issues like drug smuggling and trade imbalances. �
The Fulcrum +1
However, these measures sparked strong opposition both within the United States and from Canada — a key U.S. ally and trading partner — because most Canadian exports to the U.S. usually flow tariff-free under the USMCA free-trade agreement. �
The Fulcrum
🧑⚖️ Legal Challenge and Court Rulings
A federal trade court (the U.S. Court of International Trade) ruled in 2025 that Trump had overstepped his legal authority by using emergency powers to impose broad tariffs, including on Canada. The court said the emergency law (the IEEPA) doesn’t allow sweeping tariff actions without a clear national security justification. This decision effectively struck down and overturned the tariffs. �
The Economic Times +1
Although an appeals court later kept parts of the tariffs in place while the legal process continued, the initial decision was a significant legal setback for the administration’s approach and was seen as a vindication for Canada’s criticism of the policy. �