Trump keeps carveout under CUSMA in new 10 per cent global tariff
Global News
A fact sheet from the White House said the latest tariff will not hit goods compliant under the Canada-U.S.-Mexico agreement on trade, known as CUSMA.
The majority of Canadian exports will remain exempted from Donald Trump’s new 10 per cent global levy, as the U.S. president pivots after the Supreme Court dealt a blow to his plans to realign global trade.
A fact sheet from the White House said the latest tariff will not hit goods compliant under the Canada-U.S.-Mexico agreement on trade, known as CUSMA.
The duty will also not be applied on top of sector-specific tariffs like steel, aluminum and automobiles.
Trump signed an executive order Friday to enact the worldwide tariff beginning on Tuesday using Section 122 of the 1974 Trade Act. That duty can only stay in place for 150 days, unless Congress votes to extend it.
“Those members of the Supreme Court who voted against our very acceptable and proper method of TARIFFS should be ashamed of themselves,” Trump posted on social media.
“Their decision was ridiculous but, now the adjustment process begins, and we will do everything possible to take in even more money than we were taking in before!”
Earlier Friday, the U.S. Supreme Court concluded it was not legal for Trump to use the International Emergency Economic Powers Act, better known as IEEPA, for his “Liberation Day” tariffs and fentanyl-related duties on Canada, Mexico and China.
Trump declared an emergency at the northern border related to the flow of fentanyl in order to use IEEPA to hit Canada with 35 per cent tariffs. Those duties did not apply to goods compliant under CUSMA.
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