Trump’s new Canada tariffs rely on a law never used before

In a move reminiscent of the Great Depression, President Donald Trump invoked a rarely used statute to impose a 50% tariff on $20 billion in Canadian imports. Section 338 of the Tariff Act of 1930, a law never before utilized, allows the president to impose tariffs on countries that have discriminated against U.S. businesses. This unprecedented action has sparked controversy and legal uncertainty, as it is unclear whether the tariff will withstand a legal challenge.

Section 338, which has been dormant since its inclusion in the Smoot-Hawley Act, has been criticized for being obsolete and superseded by more recent trade laws. However, supporters argue that it is still valid and applicable in cases of trade discrimination. The use of this law has strained relations between the U.S. and Canada, two longstanding allies.