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Canada Reacts to Supreme Court Nullification of Trump Tariffs, Prepares Summer USMCA Review

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Supreme Court Overturns Trump Global Tariffs The U.S. Supreme Court struck down President Trump’s worldwide tariffs, including the 25‑35 % duties imposed on Canadian goods such as fentanyl‑related products, on February 21, 2026 [1]. The decision aligns with Canada’s long‑standing claim that the tariffs were unjustified, prompting muted celebrations among Canadian officials and industry leaders. Although the ruling removes the legal basis for the tariffs, most affected trade was already covered by a USMCA exemption, limiting practical impact.

LeBlanc Flags Remaining Steel, Aluminium and Auto Levies Trade Minister Dominic LeBlanc welcomed the court’s ruling but warned that Trump’s “unjustified” tariffs on other sectors—particularly steel, aluminium and automobiles—remain in force [1]. He emphasized that Canada will continue to press for relief on these duties during the upcoming USMCA review, scheduled for the summer ahead of the July 1 deadline. LeBlanc plans to meet U.S. Trade Representative Jamieson Greer to discuss lingering barriers such as wine, spirits, dairy rules and the Online Streaming Act.

White House Confirms Exemption While Trump Raises Tariff Rate The White House announced that the USMCA exemption survives the 10 % global tariff that replaced the struck‑down duties [1]. Shortly after, President Trump used Truth Social to declare that the tariff would be increased to 15 %, signaling a potential escalation despite the exemption. This contradictory messaging creates uncertainty for Canadian exporters who must navigate both the exemption and the higher tariff ceiling.

Industry Calls for Predictable USMCA Renewal Dennis Darby, CEO of Canadian Manufacturers & Exporters, urged a stable USMCA renewal to end recurring supply‑chain disruptions and support diversification of exports [1]. Canadian manufacturers aim to double non‑U.S. export volumes by 2035, making a successful review critical for long‑term growth. The looming July 1 deadline intensifies pressure on both governments to resolve outstanding trade barriers before the next agreement term begins.

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Timeline

2017 – The U.S. International Trade Commission overturns trade actions targeting Bombardier’s commercial jet fleet, prompting the company to shift focus to business and private jets [5].

2024 – U.S. Commerce Department data show 86 % of Canadian imports and 87 % of Mexican imports meet USMCA rules, shielding billions of dollars from tariffs [4].

April 2025 – President Trump imposes 25 % tariffs on Mexican products and 35 % tariffs on Canadian products that fail USMCA compliance, while duty‑free treatment continues for compliant goods [4].

Dec 5, 2025 – Trump signals he may exit the USMCA, warning that termination could reinstate tariffs and raise consumer prices for cars, electronics and medical devices; the agreement is slated for a July 2025 review [4].

Jan 3, 2026 – U.S. forces seize Venezuelan President Nicolás Maduro, after which Venezuela halts shipments of roughly 35,000 bpd of oil to Cuba, worsening the island’s fuel shortages [2].

Jan 30, 2026 – Trump posts on Truth Social that he will impose a 50 % tariff on any Canadian aircraft sold in the U.S. and “decertify all aircraft made in Canada” until Canada certifies Gulfstream jets, framing the move as retaliation for a “wrongful” refusal to certify Gulfstreams [5][3].

Jan 30, 2026 – The White House clarifies that Trump’s social‑media claim does not affect certification of Canadian‑built aircraft already operating in the United States, narrowing the scope of the threatened action [2].

Jan 30, 2026 – Trump signs an executive order proposing new tariffs on any nation that supplies oil to Cuba, expanding pressure on Havana’s allies [2].

Jan 30, 2026 – Bombardier emphasizes its U.S. footprint, noting 3,000 employees at nine U.S. facilities and 2,800 U.S. suppliers, and urges a swift settlement to avoid disrupting air traffic and the flying public [3].

Jan 30, 2026 – Aviation analyst Richard Aboulafia warns that no president has ever directly decertified jets and calls using aircraft safety as a trade weapon “an incredibly bad idea,” warning of a potential transportation disaster [3].

Feb 20, 2026 – The U.S. Supreme Court overturns Trump’s global tariffs, including the 35 % fentanyl duties on Canada; Trade Minister Dominic LeBlanc calls the tariffs “unjustified,” noting that 85 % of those duties were already exempt under the USMCA [1].

Summer 2026 (by July 1 deadline) – LeBlanc prepares to meet U.S. Trade Representative Jamieson Greer ahead of the USMCA review deadline, with Greer describing negotiations as “more challenging” over wine, spirits, dairy rules and the Online Streaming Act; Canadian manufacturers push for a predictable renewal to support export diversification and Canada’s goal to double non‑U.S. exports by 2035 [1].

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