U.S. President Donald Trump says he will move forward with a new 10 per cent global tariff, just hours after the U.S. Supreme Court struck down his use of emergency powers to impose sweeping trade duties.
Speaking Friday, Trump said he would sign an executive order invoking Section 122 of the 1974 Trade Act to implement the tariff worldwide. He indicated the new levy would take effect within three days. However, tariffs imposed under Section 122 can only remain in place for 150 days unless Congress votes to extend them.
“Their decision is incorrect,” Trump said of the Supreme Court ruling. “But it doesn’t matter because we have very powerful alternatives.”
It remains unclear whether the new 10 per cent tariff will include exemptions for goods traded under the Canada-United States-Mexico Agreement (CUSMA). There is also uncertainty about whether the new duty would be layered on top of existing tariffs on steel, aluminum, automobiles, lumber and furniture, which were imposed under separate legal authorities.
Earlier in the day, the Supreme Court ruled in a 6-3 decision that Trump could not rely on the International Emergency Economic Powers Act (IEEPA) to impose broad global tariffs. The law had been used to justify both the so-called “Liberation Day” tariffs and fentanyl-related duties on Canada, Mexico and China.
In its majority opinion, the Court stated that the U.S. Constitution clearly grants Congress the authority over taxation and tariffs. Chief Justice John Roberts wrote that the Framers did not vest any part of the taxing power in the Executive Branch, reinforcing that such authority lies with lawmakers.
The ruling did not clarify whether companies that paid tariffs under IEEPA would be entitled to refunds.
Trump described the decision as “deeply disappointing” and a “terrible” outcome, but signalled that his administration would continue pursuing aggressive trade actions through other mechanisms.
In Canada, federal officials welcomed the ruling. Canada–U.S. Trade Minister Dominic LeBlanc said the decision reinforces Canada’s longstanding position that the IEEPA tariffs were unjustified. At the same time, he acknowledged that significant challenges remain, particularly with Section 232 tariffs that continue to affect Canadian steel and aluminum industries.
While the Supreme Court decision removes one layer of trade tension, the announcement of a new global tariff adds fresh uncertainty for Canadian exporters and businesses integrated into cross-border supply chains. With details still emerging, industries on both sides of the border are watching closely to determine how the new measure will be applied and whether CUSMA protections will remain intact.