Ruling on U.S. tariffs is no relief from uncertainty: business groups

TORONTO – Business groups have welcomed the U.S. Supreme Court ruling that has struck down President Donald Trump’s sweeping tariffs but they say it provides no relief from ongoing trade uncertainty. 

The ruling, which found Trump couldn’t use a national security statute to impose the broad tariffs, also doesn’t affect the sector-specific tariffs imposed on metals, lumber and automobiles.

And while it would affect the 35 per cent duties against Canadian exports as a whole, the tariffs imposed under the International Emergency Economic Powers Act currently don’t apply to goods compliant under the Canada-U.S.-Mexico trade agreement.

“The Supreme Court’s decision to strike down the use of IEEPA tariff powers is a legal ruling, not a reset of U.S. trade policy. This is certainly not the last chapter of this never-ending story,” said Candace Laing, chief executive of the Canadian Chamber of Commerce, in a statement.

“Canada should prepare for new, blunter mechanisms to be used to reassert trade pressure, potentially with broader and more disruptive effects.”

At an early Friday afternoon press conference, Trump already said he will sign an executive order to impose a 10 per cent global tariff.

Trump said he will use Section 122 of the 1974 Trade Act to hit the world with the levy — but that duty can only stay in place for 150 days, unless Congress votes to extend it. Trump said the new tariff will take effect in three days.

It was not immediately clear whether the new tariff will have a carveout for goods traded under the Canada-U.S.-Mexico Agreement on trade, better known as CUSMA.

It also was not clear whether the new 10 per cent levy would stack on top of Trump’s separate tariffs on steel, aluminum, automobiles, lumber and furniture.

CIBC chief economist Avery Shenfeld said in a note, released before Trump’s latest announcement, that the court decision provides more immediate relief to Canada’s competitors that face tariffs on all of their exports to the U.S.

But he says it does remove the threat that the 35 per cent tariffs could come into play if the U.S. opts to withdraw from CUSMA.

“It is nevertheless an improvement in Canada’s negotiating position in the upcoming USMCA talks, by removing the leverage the U.S. had with its threatened 35 per cent fentanyl tariff,” he said.

Dennis Darby, CEO of Canadian Manufacturers & Exporters, said in a statement that while the ruling is welcome, it doesn’t change the sectoral tariffs, and uncertainty continues to weigh.

“Predictable, rules-based trade is essential for manufacturers on both sides of the border.”

He said the best outcome would be for a productive renewal of the CUSMA agreement to put an end to recurring trade disruptions.

Other business groups like the Ontario Chamber of Commerce and the Toronto Region Board of Trade also noted the ongoing risk of other tariff actions along with wider trade uncertainty. 

Overall the situation isn’t much better for Canadian business given the continuing threat of other tariff action, said Gil Lan, an associate professor in the law and business department at Toronto Metropolitan University’s Ted Rogers School of Management.

“Canadian exporters can’t necessarily breathe a sigh of relief,” he said. 

And even with the key Supreme Court decision in place, there are many questions remaining such as the potential issuing of refunds to the companies that paid these tariffs, and how those payouts might be divided, he said.

While it’s the U.S. importer that actually pays the tariff, some Canadian exporters either agreed to eat the cost or split it with the U.S. importer, raising complicated questions of allocating whatever comes back.

As well, given many retailers pointed to U.S. tariffs as putting pressure on costs, there’s a question of whether consumers will see any relief, he said.

As it stands, however, it’s not clear what will happen with refunds and the Supreme Court did not rule on how any refund process would work.

This report by The Canadian Press was first published Feb. 20, 2026.