
Prime Minister Mark Carney praises US court’s decision to overturn broad tariffs imposed under Trump’s emergency powers, while warning that other tariffs still threaten Canada’s trade with the United States
Prime Minister Mark Carney is welcoming a major US court ruling that struck down sweeping tariffs imposed on Canada and other nations under President Donald Trump, calling it a “vindication” of Canada’s longstanding position against the measures.
The US Court of International Trade ruled Wednesday(May 28) that Trump overstepped his presidential powers under the International Emergency Economic Powers Act (IEEPA), saying the law does not authorize broad-based tariffs without clear links to a national emergency.
The court invalidated Trump’s controversial “Liberation Day” duties and fentanyl-related tariffs, which had targeted Canada, Mexico, and China
Also Read: Which Trump trade tariffs were overturned in a seismic court ruling, which ones remain
“This decision is consistent with Canada’s long-standing position that the US IEEPA tariffs were unlawful as well as unjustified,” Carney told MPs in the House of Commons on Thursday(May 29).
Carney emphasized that while this is a positive development, Canada’s economic relationship with the US remains under threat from other protectionist measures. “Our trading relationship with the United States is still profoundly and adversely threatened by unjustified tariffs on steel, aluminum and the auto sector,” he warned.
The tariffs, imposed under different US laws citing national security concerns, remain in place, which serves as a point of ongoing concern for Canadian industry and policymakers.
Carney vowed that the new federal government would make it a top priority to “establish a new economic and security relationship with the United States and to strengthen our collaboration with reliable trading partners and allies around the world.”
The ruling also landed with a sense of cautious optimism among Canadian business leaders.
“This is not the end of the trade war,” said Candace Laing, president of the Canadian Chamber of Commerce. “Business is still looking for stability. Ultimately, the end of this trade war with the US will not come through the courts. It will come when we have negotiated a durable new agreement on trade that is trusted and respected by all involved.”
Response from the Trump administration
The Trump administration immediately filed a notice of appeal, with White House officials slamming the ruling. Trump himself has yet to comment, but his allies have called the court’s decision an overreach by “unelected judges.”
Still, for now, Canadian officials are taking the win. As Bloc Québécois Leader Yves-François Blanchet put it, the ruling “gives Canada a better position” heading into future trade talks.
The US Court of International Trade ruled Wednesday(May 28) that Trump overstepped his presidential powers under the International Emergency Economic Powers Act (IEEPA), saying the law does not authorize broad-based tariffs without clear links to a national emergency.
The court invalidated Trump’s controversial “Liberation Day” duties and fentanyl-related tariffs, which had targeted Canada, Mexico, and China
Also Read: Which Trump trade tariffs were overturned in a seismic court ruling, which ones remain
“This decision is consistent with Canada’s long-standing position that the US IEEPA tariffs were unlawful as well as unjustified,” Carney told MPs in the House of Commons on Thursday(May 29).
Carney emphasized that while this is a positive development, Canada’s economic relationship with the US remains under threat from other protectionist measures. “Our trading relationship with the United States is still profoundly and adversely threatened by unjustified tariffs on steel, aluminum and the auto sector,” he warned.
The tariffs, imposed under different US laws citing national security concerns, remain in place, which serves as a point of ongoing concern for Canadian industry and policymakers.
Carney vowed that the new federal government would make it a top priority to “establish a new economic and security relationship with the United States and to strengthen our collaboration with reliable trading partners and allies around the world.”
The ruling also landed with a sense of cautious optimism among Canadian business leaders.
“This is not the end of the trade war,” said Candace Laing, president of the Canadian Chamber of Commerce. “Business is still looking for stability. Ultimately, the end of this trade war with the US will not come through the courts. It will come when we have negotiated a durable new agreement on trade that is trusted and respected by all involved.”
Response from the Trump administration
The Trump administration immediately filed a notice of appeal, with White House officials slamming the ruling. Trump himself has yet to comment, but his allies have called the court’s decision an overreach by “unelected judges.”
Still, for now, Canadian officials are taking the win. As Bloc Québécois Leader Yves-François Blanchet put it, the ruling “gives Canada a better position” heading into future trade talks.
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Subscribe to The Economic Times Prime and read the ET ePaper online.