President Donald Trump’s extra 10% duty on Canada added fuel to the debate over his legal authority on trade, just as the Supreme Court is about to consider a challenge to his global tariffs.
“Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now,” Trump wrote.
He didn’t cite a specific law for the extra levy, and the White House didn’t immediately respond to a request for comment.
But because he is adding it to his existing Canada tariffs, the 10% presumably invokes the International Emergency Economic Powers Act (IEEPA).
Trump also claimed the TV ad was meant to influence the Supreme Court, which will hear arguments on Nov. 5 in a case disputing his ability to invoke IEEPA to justify tariffs.
The administration has used IEEPA to impose his so-called reciprocal tariffs on countries around the world as well as separate tariffs on Canada, Mexico and China over the fentanyl trade.
Canada currently faces a 35% base tariff rate, but it doesn’t apply to goods that comply with the US-Mexico-Canada Agreement that Trump negotiated in his first term.
Trump’s lack of specifics on his new 10% Canada tariff raised key questions for Erica York, vice president of federal tax policy at the Tax Foundation.
