DiscoverCanada Tariff News and TrackerUS Tariffs Escalate Tensions with Canada, Supreme Court Battle Looms Over Trade Powers in 2025
US Tariffs Escalate Tensions with Canada, Supreme Court Battle Looms Over Trade Powers in 2025

US Tariffs Escalate Tensions with Canada, Supreme Court Battle Looms Over Trade Powers in 2025

Update: 2025-09-24
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Listeners, it’s September 24th, 2025, and you’re tuned in to Canada Tariff News and Tracker, your source for the latest headlines and analysis on tariffs impacting Canada, with a special focus on US and Trump administration policy.

In the latest wave of tariff news, the United States under President Donald Trump has kept tariffs squarely in the spotlight. As of June 2025, the average effective US tariff rate hit a peak of 21.1%, according to reporting from The Business Standard. Imports to the US dropped by 5.8% year-over-year in that month, a sign of the real economic impact as tariffs bite into cross-border trade.

Canada remains in sharp focus for US policy. President Trump’s administration this year announced a set of sweeping new tariffs ranging from 10% to 50% on several major US trading partners, including Canada. This move was positioned as a way to tackle the US trade deficit and address concerns like drug trafficking. The White House submitted a Supreme Court filing just days ago, asserting that President Trump possesses both statutory and constitutional authority to impose these broad tariffs using emergency laws like the International Emergency Economic Powers Act, even without congressional approval. If the Supreme Court upholds that view, it could strengthen executive powers significantly and reshape the tariff landscape for the long term, with Canada a chief partner in the crosshairs. This legal debate is drawing attention across industries that rely on predictable US-Canada trade.

In practical terms, listeners, the Trump administration temporarily lifted some Canadian tariffs recently, but challenges continue. The CPA Practice Advisor reports that US consumers now face an overall average effective tariff rate of 17.4%. Tariffs on Canadian steel and aluminum products remain notably high after earlier increases to 25%, and most previous exemptions for Western nations—including Canada—were scrapped. This has hit sectors such as auto manufacturing, building materials, and consumer goods particularly hard, as reported by Fisher Investments.

Developers, manufacturers, and exporters on both sides of the border are reporting disrupted supply chains and delays. These tariffs have made project planning difficult and increased costs for businesses importing Canadian materials. There’s also a political angle: a recent National Post poll found that a majority of Canadians believe President Trump is unlikely to honor any new trade deal made between the US and Canada, which is adding to uncertainty and skepticism about future negotiations and the stability of existing agreements.

Listeners, as we track the evolving situation, the big stories for Canada remain the durability of bilateral trade ties and the outcome of the legal fight over presidential tariff powers, which could set the tone for US-Canada economic relations in the years ahead.

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US Tariffs Escalate Tensions with Canada, Supreme Court Battle Looms Over Trade Powers in 2025

US Tariffs Escalate Tensions with Canada, Supreme Court Battle Looms Over Trade Powers in 2025

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