Detroit despairs as ‘insanity’ of Trump’s Canada trade war punishes city
Unpopular new policy comes as midterms loom and control of Congress could be decided by several Michigan races Every day $1bn worth of goods crosses the river dividing Detroit, Michigan, and Windsor, Ontario, two largely blue-collar US and Canadian cities that have come to act as one in the creation of North America’s auto industry. News this week of Donald Trump’s escalating trade spat with…
In a trade war with Canada, U.S. President Donald Trump has invoked a 1930 law to impose a 50% tariff on Canadian goods. This legal move, known as the Section 338 Tariff Act, is a nearly century-old set of laws that were designed to protect U.S. industry during the Great Depression. However, this law has never been tested in court, which presents a challenge for all involved parties.
Trump faces the risk of having the law invalidated, which could lead to the repayment of over US$160 billion in collected tariffs. The tariffs are seen as a testing ground for new approaches and justifications for tariff action by the administration. The new tariffs could also be used as a tool against other countries, creating a ripple effect within the global trading system.
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