As Canada Tariffs Rise, Supreme Court Questions Trump's Emergency Trade Powers

President Donald Trump imposed an additional 10% tariff on Canadian imports on October 24, 2025, escalating tensions between the two nations after Ontario ran a $75 million anti-tariff advertisement during the World Series that featured the voice of former U.S. President Ronald Reagan. The ad, which criticized Trump's trade policies and ran without immediate removal, prompted the U.S. leader to accuse Canada of "fraud" and "cheating," leading to the abrupt termination of ongoing trade negotiations, according to a Cryptopolitan report.

The ad, produced by Ontario Premier Doug Ford, quoted Reagan's 1987 remarks on tariffs, arguing they harm consumers and businesses. Trump, who has leveraged tariffs as a central economic policy since his re-election, responded by freezing discussions with Canadian Prime Minister Mark Carney, who has repeatedly called the talks "constructive" but emphasized Canada's inability to control U.S. trade policy, according to the same Cryptopolitan report. The move adds to a series of disputes between the two countries, including Trump's 50% tariffs on Canadian steel and aluminum, which have hurt industries on both sides of the border, as detailed in a Global News report.

Canadian officials have sought to mitigate the impact through targeted tariff exemptions. Finance Minister François-Philippe Champagne announced relief on select U.S. and Chinese steel and aluminum imports to support domestic sectors, including public health, national security, and agriculture, according to a SteelOrbis report. Meanwhile, Carney is prioritizing diversification of trade relationships, with a focus on strengthening ties in Southeast Asia. He is set to attend the 47th ASEAN Summit in Malaysia, where he will emphasize Canada's commitment to regional cooperation and economic integration, per a Free Malaysia Today report.

The U.S. aluminum industry remains a focal point of the trade conflict. Alcoa Corp., the largest U.S. aluminum producer, reported $69 million in additional costs from Canadian import tariffs in the third quarter, though rising domestic prices partially offset the impact, according to a Bloomberg article. CEO William Oplinger noted that U.S. aluminum premiums have surged 113% since early June due to Trump's trade measures, with further costs expected to reach $50 million in the current quarter. The company has also faced challenges from energy costs and operational issues at its Spanish smelter, the Bloomberg article added.

Labor groups in Canada have intensified calls for action as tariff-related layoffs mount. Unifor, Canada's largest private-sector union, demanded immediate procurement policies to save the PACCAR truck plant in Quebec, which announced 300 additional layoffs linked to U.S. tariffs. Union leaders argued that local governments must prioritize domestic purchases to protect jobs and industrial expertise, according to a Unifor statement.

Legally, Trump's tariff authority faces scrutiny in the U.S. Supreme Court, where justices will hear arguments on November 5 about whether the president can unilaterally impose tariffs under emergency powers. Trump has defended the policy as "vital" to national security and economic strength, despite court rulings deeming parts of his strategy unconstitutional, as reported by Global News. The Justice Department has warned that revoking the tariffs could lead to "financial ruin" for the U.S., while critics argue they violate congressional authority over trade.

As tensions persist, Carney's government continues to navigate a complex landscape. While Trump has accused Canada of attempting to influence the Supreme Court case through the ad, Ottawa maintains that its actions are within legal bounds. Carney's focus on ASEAN and other trade partners reflects a broader strategy to reduce dependency on the U.S. market, even as negotiations on steel, aluminum, and energy sectors remain stalled, according to the Cryptopolitan report.