The U.S. Supreme Court is set to hear oral arguments challenging President Donald Trump’s power to use the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs, a core pillar of his economic policy since taking office in January. And now is the time for local Canadian businesses to come together in response.
The outcome will potentially have a number of implications. If the Supreme Court rules against Trump, the administration has backup plans. There are several other laws that provide the president with some power to impose tariffs, though none with the rapid, sweeping authority that Trump requested under IEEPA.These include:
Tariffs when imports impair national security ie: steel, aluminum and automobiles are included
Unfair trade practices give the President discretion to adjust tradePermitting tariffs to defend domestic industry against severe harm inflicted by importsUp to 50% tariffs on nations that discriminate against the USA
Temporary import surcharges up to 15% to avoid a sharp fall in the US dollar in the foreign exchange market
All these backup plans are vague and will allow challenges for interpretation but we must start to prepare for the reality ahead.
Formation of business groups like associations by sector are more important than ever. We must not wait for another country to provide our solutions to get out of these extraordinarily difficult times. We must start to produce more goods in our own country as our export trade businesses evaporates.
Governments will be increasingly challenged with the implications of rising debt so we should not wait for subsidized solutions. We must start to identify opportunities and encourage our governments to lower interprovincial trade barriers and red tape at speeds we have never seen in the country before.
My advice to each adult Canadian is to join a business association in your community and start to work with your local businesses to identify opportunities to work together for Canadian growth and prosperity.
