Saturday, 2 August 2025

Why Canada Is Thoroughly and Truly Screwed: Making The Case For Freeland.

The Trump Administration derives its trade authority from the Trade Expansion Act of 1962, passed by Congress during the Kennedy Administration. It purports to promote the general welfare, foreign policy, and security of the United States through international trade agreements. Under Section 232, the Executive can bypass Congress and impose tariffs on imports under the three conditions outlined in the Act. Essentially, tariffs can be imposed by the President based on national security considerations. 

This Act is part of the delegation of powers by Congress to the President. Under Article I, Section 8 of the Constitution, Congress is attributed the power to impose duties and regulate foreign commerce. Under the Congressional Trade Authority Act of 2025, two House Democrats have introduced a Bill to restrict presidential authority over trade. By doing so, this is an implicit recognition that presidential powers, however limited in scope, are lawful. These members hope to retroactively restore trade authority to Congress. As a result, congressional approval would be required for any Executive actions taken regarding trade and national security considerations. In addition, jurisdiction would be transferred from the Commerce and Defence Departments solely to the latter. 

Meanwhile, the courts have already begun to weigh in on the Trump Administration's broad use of tariffs under the International Emergency Economic Powers Act. Last May, the U.S. Court of International Trade ruled that the President had exceeded his constitutional authority and ordered that the tariffs be vacated. On appeal, the Federal Circuit Court allowed the Trump Administration to continue collecting tariffs while the case is before the Federal Circuit Court of Appeals. Oral arguments are already underway before an eleven-member bench. That decision, once it comes down, is expected to be appealed to the Supreme Court of the United States.

Finally, one cannot help but be amused that the Trump Administration has not taken the elementary precaution of having its trade Executive orders backstopped by introducing Congressional legislation to ratify them following implementation. But then again, we are talking about the TRUMP Administration.

It's my contention that Freeland is the only person who can crack that nut as it relates to American tariffs imposed on Canadian steel, aluminum, lumber and forest products, automobiles and parts, energy, potash and some copper goods. In addition, blanket tariffs are now in effect on all non-CUSMA-compliant imports. Carney would do well to bear that in mind going forward.