Trump just expanded his tariff playbook with a powerful trade weapon no president has ever used

This material may not be published, broadcast, rewritten, or redistributed. ©2026 FOX News Network, LLC. All rights reserved. Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions. Legal Statement. Mutual Fund and ETF data provided by LSEG. David Clement, Policy Director at the Consumer Choice Center, says Canada's trade relationship with the U.S. is too strong to unravel, but shifting tariff policies are discouraging business investment. President Donald Trump is opening a new chapter in his playbook by invoking a tariff authority that no previous president has ever used, a move that could reshape future trade wars. Trump used a little-known provision of the 1930 Tariff Act to impose 50% tariffs on a range of Canadian goods. Known as Section 338, the nearly century-old law gives the president broad authority to impose duties on imports from countries deemed to discriminate against U.S. commerce. Its first-ever use by a U.S. president could establish a new legal blueprint for future trade disputes. Canada, one of America's top trading partners, is the first country targeted under the lo