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Free Trade

My New Montreal Economic Institute Paper on "The Legal Battle Over Trump's Tariffs: Implications for Canada"

The paper provides an overview of the legal vulnerabilities of the Trump tariffs against Canadian goods, and what can be done to prevent a recurrence of his abuses.

Ilya Somin | 9.23.2026 10:52 AM

Illustration: Midjourney

Today, the Montreal Economic Institute published my paper on "The Legal Battle Over Trump's Tariffs: Implications for Canada." This overview of the legal weaknesses of Trump's tariffs and what can be done to curb future abuses of the same kind, may also be of use to Americans interested in these issues. Here is an excerpt:

Since returning to power in January 2025, President Donald Trump has sought to impose massive tariffs on imports from Canada, as well as numerous other trading partners. This policy is simultaneously harmful, unjust, illegal, and damaging to the US, Canadian, and world economies. It is also needlessly poisoning US relations with Canada and other crucial allies.

Trump's initial tariffs were invalidated by the US Supreme Court, and more recent ones may well also be struck down. But even if invalidated by courts, illegal tariffs and associated economic uncertainty may still persist for many months. Canada would do well to recognize that these US tariffs are unpopular and rest on shaky legal ground, and try to capitalize on the resulting opportunities.

In February 2025, President Trump tried to use the International Emergency Economic Powers Act of 1977 (IEEPA) to impose 25% tariffs on Canada, ostensibly to combat the smuggling of fentanyl across the US-Canadian border. On April........

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