Kim Quoted on Trump Administration Imposing Section 338 Tariffs on Canada
Bloomberg Law
International Trade Partner James Kim was quoted on President Trump’s pivot to Section 338 of the Tariff Act of 1930 as a means to impose tariffs of up to 50% on Canadian imports.
James said, “Section 338’s main appeal is speed and directness. The statute is also purpose-built for exactly the fact pattern the administration is describing: retaliation against US goods.”
However, the Administration has already faced setbacks from the US Supreme Court ruling against the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) and the US Court of International Trade’s challenge on Section 122 tariffs. Additional litigation remains a threat.
“Given the outcome of the IEEPA tariff litigation, courts may be less willing than they once were to defer to the executive’s reading of broad trade statutes, which adds litigation risk,” James said.
He added that plaintiffs might challenge “whether Canada’s actions really meet the statute’s discrimination test, which compares how Canada treats US goods against how it treats similar goods from other countries” and that Canada would likely say that its actions were taken out of defensive retaliation.
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