CUSMA worries persist, but businesses taking small wins from court’s tariff decision

Canadian business groups say trade uncertainty continues to linger ahead of a formal review of the trade agreement between Canada, the U.S. and Mexico, however there are some reasons for hope after the U.S. Supreme Court’s decision last week curtailing global tariffs.

The ruling has “changed a little bit of the thinking” around tariffs overall, said Canadian Federation of Independent Business president Dan Kelly, even as separate sectoral tariffs remain in place for Canadian industries like steel, aluminum, automobiles, lumber and cabinetry.

The top court’s decision struck down U.S. President Donald Trump’s “Liberation Day” tariffs and fentanyl-related duties on Canada, Mexico and China.

Trump responded by signing an executive order to enact a 10 per cent worldwide tariff using Section 122 of the 1974 Trade Act. That rate will expire after 150 days unless Congress votes to extend it.

But Kelly said there are short-term wins for Canada, even though the court’s decision didn’t affect most Canadian exports. He said relief will be felt especially by small businesses that sell goods not covered by the Canada-U.S.-Mexico Agreement — previously subject to a 35 per cent levy.

“It showed that there are at least some checks and balances in the U.S. system,” said Kelly.