Trump Administration Resorts to Outdated Protectionism, Targets Canada with 1930s Tariff Law
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The Trump White House has imposed a draconian 50% tariff on $20 billion of Canadian imports, invoking the archaic Section 338 of the Tariff Act of 1930. Legal experts and critics denounce the administration’s disregard for established trade-law procedures and warn that the move undermines international cooperation.
President Donald Trump has escalated his nationalist economic agenda by announcing a staggering 50 percent tariff on approximately $20 billion worth of Canadian goods, from hockey sticks to building materials. In a further threat to cross-border relations, Trump warned of a similar punitive levy on Canadian automobiles starting in 2027. The administration claims these measures are justified under Section 338 of the Tariff Act of 1930—a relic of the protectionist past—which allegedly allows duties of up to 50 percent when another country is accused of discriminating against the United States.
Section 338 has never before been used to impose tariffs, and legal scholars highlight that the law requires a formal discrimination assessment and a review by the International Trade Commission—procedures the administration has blatantly ignored. Marc Busch, a former Commerce Department adviser and Georgetown University professor, cautioned that Trump’s reliance on this vague and outdated statute could hand him “the most latitude,” as its language is dangerously ambiguous about what constitutes discrimination.
This move is the latest in a pattern of reckless attempts by the Trump administration to weaponize obscure statutes for trade wars, including failed efforts under the International Emergency Economic Powers Act and Section 122 of the Trade Act of 1974, both struck down by the courts. Even the recent use of Section 301 to target countries over forced-labor concerns has drawn criticism, though it remains in effect after the Supreme Court declined to intervene.
Canada, refusing to be bullied, responded to earlier U.S. tariffs with its own retaliatory duties, and the two countries have been locked in a trade dispute since last year. The Trump administration’s claim that Canada gave the European Union a more favorable cheese quota is seen by critics as a flimsy pretext for further escalation, reflecting a pattern of selective grievances rather than any coherent or principled trade policy.
Lawsuits challenging the Section 338 tariffs are expected, but with the courts unlikely to rule before the 2027 deadline for the proposed auto tariffs, the outcome remains uncertain. The fate of this unprecedented and reckless application of a Depression-era law now rests with the judiciary.