Exporters brace for more uncertainty after U.S. Supreme Court strikes down tariffs

Maritime exporters are dealing with an extra layer of uncertainty following new tariff developments in the United States.

The U.S. will stop collecting tariffs on Tuesday imposed under the International Emergency Economic Powers Act, which were struck down last week in a U.S. Supreme Court decision.

But with U.S. President Donald Trump threatening a new 15 per cent duty under different legal channels, Canadian exporters are expecting no relief from economic uncertainty in the near future.

“The pro certainly is now we have the legal limit, so that’s a very positive thing,” says Ron Marcolin, divisional vice-president of Canadian Manufacturers & Exporters in New Brunswick and Prince Edward Island.

“The negative is that there won’t be any change in the short-term. What we’re really looking for is (The Canada-United States-Mexico Agreement) review and gearing up for the negotiations on that front.”

CUSMA negotiations are underway now and will lead to a formal review beginning this summer.

New Brunswick Premier Susan Holt said she wasn’t surprised by the U.S. Supreme Court decision but also didn’t believe it would change much in the short-term.

“The frustration is that with this president, we’re not sure that Supreme Court decision will have bearing on their actions and what they choose to do in other ways, because as you would have seen, New Brunswick is more and more feeling the impact of the reduction of business from the U.S.,” said Holt, to reporters on Friday.

“It didn’t hit us as hard or as fast as we thought it would last year, but it continues to add up and really constrain the economic activity of a lot of our exporters.”

After Friday’s court ruling, Trump initially signed an executive order to enact a 10 per cent worldwide tax starting Tuesday.

On Saturday, Trump vowed to increase the duty to 15 per cent. That tariff will expire after 150 days, but Congress can vote to extend it.

The tariff will not affect goods compliant with the Canada-United States-Mexico Agreement (CUSMA).

Sector-specific tariffs on Canadian steel, aluminum and automobiles remain in place and are not affected by the Supreme Court ruling.

With files from CTV’s Kendra Mangione