In a significant trade development, U.S. President Donald Trump announced the implementation of a 10 percent global tariff, effective immediately, while ensuring that the majority of Canadian exports will remain exempt due to compliance with the Canada-U.S.-Mexico Agreement (CUSMA). This decision comes in the wake of a recent Supreme Court ruling that hindered Trump’s broader attempts to reshape global trade policies, prompting a tactical pivot to maintain flexibility and accountability in international trade relations.

The White House acknowledged in a fact sheet that the new tariff won't apply to goods covered under CUSMA, thereby preserving key Canadian export sectors from the impending levy. It’s important to note that this tariff is separate from existing sector-specific tariffs on steel, aluminum, and automobiles. The executive order to impose the tariff was signed on a Friday and will be enforceable for a period of 150 days unless Congress elects to extend it, underscoring the temporary nature of this trade measure.

Trump's response to the Supreme Court’s decision reflected his frustration, as he criticized those justices who opposed his tariffs as shameful. He indicated that even after the ruling, his administration would look for ways to enhance revenue from tariffs, suggesting that the administration sees tariffs as a vital tool for managing trade deficits and boosting domestic revenues. This move raises questions about the future of U.S.-Canada trade relations and the broader implications for international trade policy as it evolves under the current administration.