Trump imposes new 10% global tariff after U.S. Supreme Court loss, though Canada's largely exempt

ruff says he testament impose 10 per cent world-wide tariff after U.S. Sublime Court loss

U.S. Supreme Court finds Trump overstepped authority in imposing tariffs under emergency law

What does the U.S. Supreme Court striking down Trump’s tariffs mean for Canada?

Ottawa ready for 'whatever' Trump's tariff plan is after Supreme Court loss

Joly asked about U.S. Top court ruling on tariffs

What this all means for the relatively small proportion of Canadian exports to the U.S. That don't comply with the terms of CUSMA: they'll now face a duty of 10 per cent, instead of the 35 per cent tariff that was struck down today by the U.S. Supreme Court. 

The vast majority of Canadian exports to the U.S. Will be exempt from Trump's new 10 per cent  "temporary import duty" on global trade. 

That's because in the proclamation announcing the new tariff, the U.S. President has said "USMCA-compliant goods of Canada and Mexico" will not be subject to the tax.

Roughly 90 per cent of the value of Canadian goods exported to the U.S. Comply with the terms of the three-way trade deal, known in Canada as CUSMA. 

This once again gives Canada an advantage over most other countries who don't have a trade deal with the U.S. And whose exports will now face a blanket tariff of 10 per cent. 

However it's important to keep in mind that key Canadian exports to the U.S — notably steel, aluminum and the automotive sector — don't benefit from the CUSMA exemption because the tariffs they face were imposed using different legislation.

A fact sheet posted by the White House indicates that Canadian exports to the U.S. That comply with the CUSMA trade deal will be exempt from Trump's new 10 per cent global tariff. 

The document says Trump has signed a proclamation "imposing a temporary import duty to address fundamental international payments problems and continue the Administration’s work to rebalance our trade relationships." 

The document then lists a large number of exemptions to the new "temporary import duty" including critical minerals, energy products and pharmaceuticals. 

And then the words that Canadian exporters were looking for: "USMCA compliant goods of Canada and Mexico" will not be subject to the temporary import duty. 

Trump said in a post on Trust Social that he has signed an order to impose ​a 10 per cent tariff on ​imports from all ⁠countries worldwide. 

"It is my Great ⁠Honor to have just ‌signed, from the Oval  Office, a Global 10% ​Tariff on ⁠all Countries, ⁠which will ⁠be effective ⁠almost ​immediately," he wrote. 

The White House has yet to publish the full text of the executive order, so we don't know yet if there's an exemption for Canadian goods that comply with the CUSMA trade deal. 

Hi, I'm a senior producer with our live page team. 

Ontario's representative in Washington says the U.S. Supreme Court's decision is a victory in one sense, but stressed caution when it comes to how Trump's new 10 per cent tariff could be applied to Canadian goods. 

And he also pointed to the high U.S. Tariffs imposed on major Canadian industries.

"Nothing has changed there."

Paterson emphasized that Canada still needs to work toward a trade deal with the United States in the CUSMA discussions. And he noted the president is taking advantage of other trade acts right now to put tariff pressure on countries around the world — not just Canada and Mexico. 

"This is an ongoing challenge that we have," he said. "There's probably more questions that have come out of today's decision than there are answers."

I'm Anis Heydari, a senior reporter covering business and economics. 

I just spoke with a small business in St. Thomas, Ont., that has been dealing with the IEEPA tariffs for months. Today's news offered a glimmer of hope that was quickly clouded over by confusion and uncertainty.

Railway City Hobbies imports a lot of unique items and parts from countries such as China, and sells them in both Canada and the United States.

Owner Jeff Grove said his sales were badly hit as customers turned away from higher prices due to tariffs. He also had to pay some of the tariffs himself as the importer.

After the U.S. Supreme Court ruling, he reached out to his customs broker to ask about refunds — and got a confusing answer that he said essentially amounted to "no."

With Trump now threatening a blanket 10 per cent tariff instead, Grove's business could see a benefit. That would be less than the 20 per cent tariff the goods he imported from China were facing before this ruling.

Ruffman says her company's decision was not politically motivated. The tariffs, she said, were threatening to put them out of business.

"It was do something or face death," she said. "We have 500 employees and they rely on us every two weeks to pay their bills."

She says Learning Resources strongly believes the tariffs imposed under emergency powers law were illegal, and they forced the company into the position of being "a tax collector on behalf of the government."

"We believe that our money is better spent investing back into the community and creating jobs," she said. "It's very humbling to see that the Supreme Court agreed with us."

Elana Woldenberg Ruffman says she's not bothered that Trump called her and her colleagues "sleazebags" for challenging his tariffs all the way to the Supreme Court and winning. 

Ruffman is the vice-president of marketing and product development for Learning Resources, a family-owned educational toy company that was the lead plaintiff in today's case.

"We know who we are," Ruffman said in an interview with As It Happens host Nil Kӧksal. 

"We make resources for kids that are used in schools and in homes, and that's really what we want to be doing. We want to go back to making toys."

She was asking whether Canadian exports will be hit by Trump’s new 10 per cent global tariff, or if they’ll be exempt under CUSMA. 

A spokesperson provided little clarity, but suggested that we should stay tuned. 

"Once something is signed we will be releasing paper that will cover this," said the White House official. 

Trump has yet to sign the executive order that would trigger the 10 per cent tariff, which he said he would do today. 

U.S. House votes against Trump's tariffs on Canada

The U.S. House of Representatives passed a resolution against President Donald Trump's tariffs on Canadian goods, rebuking the administration for launching a trade war with its northern neighbour. Congress has the authority to review presidential declarations. But even if the resolution also passes the Senate with a simple majority, Trump could veto it, keeping the emergency declaration and tariffs in place.

One former diplomat is calling on congressional Republicans to reject tariffs against Canada (as a reminder, we still don't know how CUSMA-compliant goods will be impacted by the Section 122 tariffs that Trump suggested he will impose on Monday).

McKenna noted that other countries had more at stake in the Supreme Court's ruling on IEEPA tariffs. "But for me, this is a matter of principle. That particular avenue was rejected," he said.

Reminding viewers that six Republican lawmakers voted with the Democrats last week to overturn tariffs against Canada, McKenna said he believes that "should this get to Congress — which is one option available to the president — there's going to be real pushback from Congress in imposing tariffs on Canada."

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