Canada ‘welcomes’ U.S. court ruling against Trump tariffs, Carney says

Click to play video: 'Trump’s ‘Liberation Day’ tariffs blocked by U.S. trade court' — The U.S. Court of International Trade on Wednesday struck down President Donald Trump’s sweeping global 'Liberation Day' tariffs, ruling that he does not have the authority to impose such tariffs and exceeded his powers under an emergency powers law.

Canada is welcoming a court ruling that blocked U.S. President Donald Trump’s tariffs, Prime Minister Mark Carney said on Thursday.

“The government welcomes yesterday’s decision by the U.S. Court of International Trade, which is consistent with Canada’s longstanding position that the U.S. IEEPA tariffs were unlawful as well as unjustified,” Carney told the House of Commons.

Carney’s comments come after a three-judge panel blocked some of Trump’s signature policies, including the fentanyl and border security-related tariffs on Canada and Mexico. The court also blocked his global “reciprocal tariffs,” which Trump imposed in April, calling it “Liberation Day.”

“The challenged tariff orders will be vacated and their operation permanently enjoined,” the ruling says.

Carney said a number of tariffs on Canada remain, which the government will continue to fight.

Story continues below advertisement

“That said, we recognize that our trading relationship with the United States is still profoundly and adversely threatened and affected by similarly unjustified [Section] 232 tariffs against steel, aluminum and the auto sector, as well as continuing threats of tariffs against other strategic sectors, including lumber, semiconductors and pharmaceuticals,” he said.

He said Canada will continue to establish a new relationship with the U.S.

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

“It therefore remains the top priority of Canada’s new government to establish a new economic and security relationship with the United States and to strengthen our collaboration with reliable trading partners and allies around the world.”

Click to play video: 'Trump’s sweeping tariffs blocked by U.S. trade court'

0:27 Trump’s sweeping tariffs blocked by U.S. trade court

Trump declared a national emergency on fentanyl earlier this year to justify the tariffs on Canada and Mexico, saying they were necessary to elicit action from those countries to curb the flow of the deadly opioid.

Story continues below advertisement

He later ordered that the United States’ trade deficits with several countries also amount to a national emergency.

But the court sided with several states and businesses that challenged the tariffs over the economic harm the plaintiffs said was caused, and that only Congress has authority under the U.S. Constitution to approve tariffs.

The White House said in a statement to Global News that the court did not dispute the harms caused by the trade “emergency” Trump declared. It did not say if the administration will appeal the decision, although it is expected to.

— With files from Global’s Sean Boynton