As Canada and the United States continue to navigate escalating trade tensions, proposed 50% U.S. tariffs on Canadian goods have raised significant legal and economic questions. Speaking recently with The Kyle Horner Show, Wendy Wagner, head of Gowling WLG's International Trade & Customs Group, examined the legal basis for the proposed tariffs, their compatibility with the Canada-United States-Mexico Agreement (CUSMA/USMCA), and the challenges facing Canada as it considers its response.

During the interview, Wendy discussed the distinction between domestic U.S. legal authority and international trade obligations, explaining why many trade experts view the proposed measures as inconsistent with CUSMA. She also explored Canada's options for responding, noting that while retaliatory tariffs are a recognized tool under international trade disputes, policymakers must carefully weigh their broader economic consequences. The conversation highlighted the increasingly transactional nature of Canada-US trade relations and the evolving role of international trade law in addressing cross-border disputes.

"If we impose retaliatory tariffs, for the most part they're going to fall on Canadian importers and raise the cost of products. The whole point is that you're banking on the fact that imposing those tariffs will put pressure on the other economy and change its behaviour. If that doesn't prove to be true, then it's not welfare-enhancing for Canada to impose tariffs in general."

To listen to the full interview, click the link below:

About Gowling WLG's International Trade & Customs Group
Today's global economy is transforming faster than many businesses can react. Tariffs are rising, geopolitical alliances are realigning, and cross-border regulation is increasingly complex. Gowling WLG's International Trade & Customs Group helps clients navigate these challenges with strategic advice on trade agreements, customs compliance, sanctions, import and export controls, trade disputes, and government advocacy. Working at the forefront of how trade rules are negotiated, shaped, and enforced, our team helps businesses manage risk, protect supply chains, and seize opportunities in an evolving global marketplace.