The two ways Trump's tariffs on Canada could collapse -- despite his fight to keep them

The courts are considering whether they're even legal under U.S. law, and the American economy has yet to feel the pain of higher prices

Author of the article:By Tracy Moran
Published Aug 03, 2025
Last updated 1 day ago
5 minute read

WASHINGTON, D.C. — Time’s up. On Friday, U.S. President Donald Trump raised the tariff rate on Canadian goods not covered under the Canada-United States-Mexico Agreement (CUSMA) from 25 to 35 per cent, saying they “have to pay a fair rate.” The White House claims it’s because of Canada’s failure to curb the “ongoing flood of fentanyl and other illicit drugs.” U.S. Customs and Border Protection (CBP) data, however, show that fentanyl seizures from Canada make up less than 0.1 per cent of total U.S. seizures of the drug; most smuggling comes across the Mexican border.

But the future of Trump’s policy also rests on shaky ground, and the tariffs could come crashing down even if Canada can’t reach a deal at some point. Imposed through a controversially declared “national emergency” under the International Emergency Economic Powers Act (IEEPA), the tariffs come with essentially three paths for relief to Canadian exporters and their American customers: the courts and the economy.

And there’s always the wildcard: that the president changes his mind. Without relying on that, National Post looks at two very possible ways out of all this:

The courts:

There is a big question hanging over whether Trump’s tariffs are even legal under the U.S. Constitution, which gives Congress powers over trade. Trump has bypassed that by claiming he’s using presidential IEEPA emergency powers.

On Thursday, the Washington, D.C.-based Federal Circuit Court of Appeals convened an en banc hearing for oral arguments in challenges to Trump’s use of IEEPA. The 11 judges questioned whether the law meant for sanctioning adversaries or freezing assets during emergencies grants Trump the power to impose tariffs, with one judge noting, “IEEPA doesn’t even mention the word ‘tariffs.’” The White House, meanwhile, says the law grants the president “broad and flexible” emergency powers, including the ability to regulate imports.

More:
https://vancouversun.com/news/the-two-ways-trump-tariffs-on-canada-could-collapse