US Unlikely to Lift Tariffs After Supreme Court Decisions

Canada’s finance minister said the US tariffs are unlikely to be removed soon, calling them the “price” countries must pay to access the American market.

François-Philippe Champagne spoke in Ottawa after US President Donald Trump’s State of the Union address, where he said tariffs could eventually replace income taxes as a main source of federal revenue.

“It is understood that the American administration believes there will be a price to access the US market,” Champagne told reporters. He said every country is paying more to trade with the United States, adding that Canada is paying “the lowest price.”

• Canada’s finance minister says US tariffs unlikely to lift soon after Supreme Court ruling
• US tariffs seen as “price” for market access, says Canada’s François-Philippe Champagne
• Canada’s trade tensions with US persist as new tariffs under Trump’s Section 122 are imposed

His remarks followed comments by US Trade Representative Jamieson Greer, who said Canada must accept “some level of higher tariff” to continue doing business with the US. Greer suggested negotiations could include broader access for American goods, including dairy products.

Trade tensions escalated after a 6-3 US Supreme Court ruling last week that struck down Trump’s sweeping tariff policy introduced in April, saying the president had exceeded his authority. In response, Trump imposed a new 10% global tariff under Section 122 of the 1974 Trade Act, a rarely used provision that allows tariffs of up to 15% for 150 days without prior congressional approval.

Canada retains exemptions under the US-Mexico-Canada Agreement (USMCA) for goods that comply with the trade pact. However, exports such as steel and aluminium tariffs and softwood lumber continue to face higher duties.

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The United States accounts for about 75% of Canada’s exports, making it Ottawa’s largest trading partner. Prime Minister Mark Carney has said Canada will work to double non-US exports over the next decade, focusing on metals and automotive industries to reduce reliance on the American market and address ongoing trade tensions.