The U.S. is unlikely to win its ‘dumb trade war’ with Canada. Here’s why

Good morning. America’s trade war against its closest ally has escalated again, with the Trump administration invoking section 338 of a notorious 1930 law to impose 50% tariffs on a wide range of Canadian imports. The sticking points were both economic and cultural, with Quebec’s French-language laws even coming under attack. Canadian Prime Minister Mark Carney is being praised for his response while Trump was criticized, even by members of his own party. This is not a war that America, or American business, is likely to win. Here’s why. Trump’s options are limited. There’s a reason this latest missive only impacts 5% of Canadian imports. The Supreme Court already decided the president can’t invoke emergency powers to impose tariffs. Walmart is now using its tariff refund to lower prices.