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After imposing a global tariff of 10 per cent following a stinging loss at the U.S. Supreme Court, President Donald Trump now says he’s raising that rate an additional five per cent — though exemptions for CUSMA-compliant goods from Canada and Mexico still apply.
On Friday, the U.S. Supreme Court struck down the tariffs Trump implemented using a 1977 law called the International Emergency Economic Powers Act (IEEPA).
In response, the U.S. president turned to Section 122 of the U.S. Trade Act to impose the new global tariff. Trump said on social media Saturday morning that he’s raising that tariff to 15 per cent after a “thorough, detailed, and complete review” of the court decision.
“During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again,” Trump said on his Truth Social platform.
Section 122 allows temporary tariffs of up to 15 per cent — but these tariffs can only be imposed for 150 days unless Congress approves an extension.
The U.S. Supreme Court struck down President Donald Trump’s global tariffs — ruling they were imposed illegally. Andrew Chang explains how the majority decision argues Trump violated federal law when he imposed sweeping tariffs in April 2025, and breaks down what the Trump administration says it’s going to do next. Images provided by The Canadian Press, Reuters and Getty Images
Trump’s latest declaration is unlikely to meaningfully affect Canada. A fact sheet from the White House distributed on Friday night says goods that are compliant with the Canada-United States-Mexico Agreement (CUSMA) are exempt from the president’s latest duty.
Still, other sectoral tariffs are still in effect. Trump has used Section 232 of the U.S. Trade Expansion Act to impose levies on Canadian steel, aluminum, copper, some automotive parts, lumber and other wood products.
Section 232 of that act allows top U.S. officials to direct the secretary of commerce to look into suspected national security threats caused by imports. Within 270 days — roughly nine months — the secretary must present the president with a report and any recommendations for action.
On Sunday morning, U.S. Treasury Secretary Scott Bessent said on CNN’s State of the Union that the new global tariff is “likely a five-month bridge” while studies on Section 232 and Section 301 tariffs are conducted.
“I think it’s highly likely that those [232 and 301] tariffs will rise up and that the 122s could disappear after five months,” Bessent told host Dana Bash.
The use of Section 232 tariffs was not addressed in Friday’s court decision. The Supreme Court ruled only on the IEEPA tariffs.
Source: cbc
