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Most recently updated firstThe US–Canada Trade War: From the Fentanyl Tariffs to Section 338 and Dollar-for-Dollar Retaliation
The conflict began with Donald Trump's November 2024 threat to impose tariffs on Canada over fentanyl and border concerns, followed by IEEPA tariffs and Canadian retaliation in early 2025. A USMCA exemption sharply limited the reach of the fentanyl tariffs, but separate U.S. Section 232 duties on steel, aluminum, autos and lumber remained a major source of pressure; the Supreme Court later struck down the IEEPA tariffs.
IEEPA Tariff Refunds: From the Supreme Court Ruling to the Console Lawsuits
President Trump used IEEPA in February and April 2025 to impose broad emergency import duties, but the Court of International Trade and then the Federal Circuit held that IEEPA did not authorize them. On February 20, 2026, the Supreme Court affirmed that conclusion 6-3, opening the way for refunds of duties CBP said totaled about $166 billion; a same-day 10% Section 122 replacement surcharge was separately invalidated at the trade court, stayed on appeal, and then expired on July 24.