How Trump is using a 1930 law to impose 50% tariffs on Canada, & what this means for the rest of the World
"New" tariffs laws, same old trade war.
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.
Written by urgent.news from Mothership's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
