Canada-US Trade War: Legal Risks, Bipartisan Threats, and Political Fallout

Montreal Economic Institute warns that Canada's counter-tariffs against the US may actually strengthen Trump's legal position under the 1930 Smoot-Hawley Act, which allows tariffs to counter "discriminatory" trade measures. The think tank argues this gives Trump ammunition to justify his 50% tariffs on Canadian imports, potentially undermining Ottawa's legal challenge. Professor Ilya Somin, a report co-author, acknowledges the political pressure but warns the...