The Tariffs Are (Partly) Dead. The Fight for Canadian Sovereignty Isn't.
Author: Matthew Shane
Published: May 29, 2025
On May 28, the U.S. Court of International Trade struck down a wide-ranging set of tariffs imposed by former President Donald Trump. These included the sweeping 10% levies on most Canadian imports introduced during his “Liberation Day” initiative, as well as additional sector-specific tariffs framed as a response to a fentanyl “emergency” at the Canadian border.
In its ruling, the court determined that Trump had overstepped his authority under the International Emergency Economic Powers Act (IEEPA), finding no credible basis for the claim that Canadian trade posed an “unusual and extraordinary” threat to U.S. national security.
This is a significant decision—for Canada and for the future of global trade governance. Effective immediately, the U.S. must cease collecting these particular tariffs. That includes the 10% duties on Canadian energy and petroleum products and the steep 25% tariffs on autos and auto parts.
A Narrow but Meaningful Win
The ruling will likely provide short-term relief to Canadian exporters. But it is almost certainly a partial reprieve.
For one, tariffs on Canadian steel and aluminum—imposed under separate U.S. statutes—remain in effect. For another, Trump’s legal team has already signaled its intent to appeal, and other legislative tools beyond the IEEPA may still be used to reintroduce similar measures.
So yes, this is a win for Canada. But it’s unlikely to be the final word.
Canada Remains Exposed
The broader lesson hasn’t changed: Canada remains vulnerable to the political winds of a foreign power.
We continue to rely heavily on exports to a single country—roughly 70% go to the U.S. We continue to underinvest in domestic manufacturing and production. And we continue to send too much of our hard-earned money abroad with our everyday purchase decisions.
If this ruling simply restores “business as usual,” we will have learned nothing. Instead, we should treat it as an opportunity to strengthen our economic foundations.
At the least, our priorities should include:
- Investing in domestic manufacturing, especially in sectors that have been hollowed out by offshoring.
- Diversifying trade partnerships, reducing dependence on any single market.
- Bringing down internal trade barriers that are hindering the growth of companies that could otherwise nationalize their product base.
- Increasing transparency around the ownership, manufacture and sourcing of consumer goods.
- Encouraging consumers and institutions to weigh long-term national benefit—not just price—when choosing suppliers.
The CANADA List is aimed squarely at #4, with a healthy dose of #5 mixed in. By providing information on ownership, manufacturing, sourcing and job support, our CANADA Score helps move beyond vague “Made in Canada” labels, and enables Canadians to purchase products that most “give back” to the Canadian economy. This is one of the most powerful ways that individual Canadians can positively influence our economy, by encouraging the domestic recirculation of currency instead of watching it travel beyond our borders.
Every dollar spent is a bargaining chip. Every purchase can be a vote for the country you want to live in.
Final Thoughts
The U.S. court’s decision provides welcome sensibility to a chaotic period in Canada’s trade relationship with the U.S. But the deeper, ongoing truth remains: Canada’s economic well-being must not hinge on the political priorities of another country—no matter how close the relationship.
If this decision leads us to relax our priorities, to go back to old consumer habits, to rebuild trade confidence with foreign powers, we’ll be right back where we started.
So let’s continue to promote a strong, diversified, and self-sustaining economy by choosing to purchase Canadian products when we can.
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