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On Friday, November 14, 2025, the Trump administration removed tariffs on over 200 agricultural products that it determined to be "not grown or produced in sufficient quantities in the United States." The tariffs on these products had been part of the administration's imposition of broad tariffs under the US International Economic Powers Act (IEEPA), referred to by the administration as "reciprocal tariffs."
This move by the administration comes amidst the backdrop of uncertainty for the reciprocal tariffs. On November 5, 2025, the United States Supreme Court (SCOTUS) heard oral arguments on whether the Trump administration is entitled to impose broad tariffs under the IEEPA. If the SCOTUS decides that the imposition of tariffs under the IEEPA was not authorized, it is unclear to what extent and when tariffs collected so far will be refunded. On what importers in the US should be doing to preserve their right to refunds of collected tariffs, readers should consult the client alert on this topic from our sister firm Dentons Cohen & Grigsby.
The SCOTUS proceedings
In February 2025, US President Donald Trump began issuing executive orders under the IEEPA imposing tariffs on imports from China, Canada and Mexico. In April 2025, President Trump expanded the breadth of the IEEPA tariffs to include the entire world by imposing a 10% tariff on all United States trading partners and higher reciprocal tariffs on specific countries.
Various stakeholders responded to these tariffs by filing suits in various federal courts within the United States. Two of those proceedings, V.O.S. Selections, Inc. v. Trump (V.O.S.) and Learning Resources, Inc. v. Trump, challenge President Trump's use of IEEPA to impose broad global tariffs. The first instance court, the Court of International Trade (CIT), in both cases held that the IEEPA does not authorize the president to impose tariffs. The US Court of Appeals for the Federal Circuit agreed in V.O.S. with the lower court, observing that the power to impose taxes belongs to Congress rather than the president. Dentons US previously wrote on the United States Court of Appeals for the Federal Circuit's ruling.
The SCOTUS consolidated these two cases and agreed to an expedited review. On November 5, 2025, it heard consolidated oral arguments for both matters. During the course of the hearing, the Justices asked the US Solicitor General and counsel for the plaintiffs numerous questions, ranging from the interpretation of tariffs as both taxes and regulatory tools, the interpretation and statutory language of IEEPA, and constitutional principles related to the delegation of congressional authority. Some Justices raised concerns that adopting the Trump administration's interpretation of IEEPA could effectively abdicate all of Congress' responsibility to regulate foreign commerce to the Executive.
At this time the SCOTUS has not indicated when a decision will be rendered, but the Trump administration has petitioned the court to expedite its ruling and the SCOTUS decision is widely expected to be issued early in 2026. Should the Supreme Court agree with the lower courts, the SCOTUS will likely remand the matter back to the CIT for final disposition on the appropriate remedy.
As these cases concern only the IEEPA tariffs, the Supreme Court's decision will not impact tariffs under other legislation, notably those under section 232 of the Trade Expansion Act of 1962 (TEA 1962) on products such as steel and aluminum; vehicles and auto parts; and timber, lumber and their derivative products.
Trump lowers tariffs on food imports
On November 14, 2025, President Trump issued an executive order which removed reciprocal tariffs on key food imports to the United States, including beef; tomatoes, oranges, bananas and other fruit; coffee and tea; and certain fertilizers. The executive order specifically amended an April 2, 2025, executive order imposing global reciprocal tariffs on numerous countries due to what he described as a national emergency over trade deficits. This decision will have a limited impact on Canada, as the Trump administration's tariffs on Canada were passed under a separate executive order.
The order describes that the decision to remove reciprocal tariffs was made in part due to current domestic demand for particular products, and current domestic capacity to produce those items.
Implications for Canadian businesses
Friday's presidential order may signal a shift in the Trump administration's priorities regarding agriculture but it is unlikely to have a profound effect on exports from Canada and Mexico, as goods meeting the rules of origin of the Canada-United States-Mexico Agreement (CUSMA), including agricultural products, are already exempted from the US's IEEPA tariffs. That said, Canadian agriculture remains a target of criticisms by the Trump administration. President Trump has taken particular aim at Canada's supply management system and especially at Canadian dairy and poultry.
Canada was initially subject to tariffs under the IEEPA on March 4, 2025, following a February 1, 2025, executive order related to the influx of synthetic opioids into the United States. On March 7, 2025, the Trump administration placed an exemption on Canadian products that are compliant with CUSMA, other than steel and aluminum products. As such, this amendment will not directly alter the current tariff regime levied against Canada by the Trump administration.
Dentons previously discussed possible impacts of tariffs on Canada's supply management system and commented on President Trump's attacks on Canadian dairy when he threatened 35% tariffs this past summer.
The removal of reciprocal tariffs on agricultural products might foreshadow food inflation and other economic dynamics in the US providing Canada with more leverage in ongoing trade talks. This move may also reflect a willingness by the Trump administration to prioritize reaching a trade deal, which could help address rising concerns within the US over inflation and affordability, over obtaining concessions from Canada's agricultural industry.
While the removal of tariffs on agricultural products and the possible striking down of tariffs imposed under IEEPA may be positive developments, Canadian producers continue to face challenges and uncertainty. A decision from the SCOTUS that upholds the Trump administration's tariffs under IEEPA may serve to embolden President Trump's use of tariffs and threats of tariffs. Further, even if the SCOTUS agrees with the lower courts that IEEPA does not authorize President Trump to impose tariffs, Canadian producers continue to face the threat of industry-specific tariffs under other available legislative mechanisms, as have been applied to Canada's forestry and automotive industry. The current tariff dynamic remains unpredictable and it is reasonable to expect that long-standing frustrations with the Canada's supply management system will return to the forefront.
Dentons will continue to monitor the legal challenge to the US's retaliatory tariffs, the progress of CUSMA negotiations and what these developments might mean for Canadian businesses.
For more information or to discuss how our team can support you in navigating the United States' shifting tariffs regime and its impact on the agricultural industry, please reach out to the authors, Morgan Camley, KC, Mélanie Power and Paul Lalonde.1
Footnote
1. The authors want to thank Mitch Bringeland and Shermaine Chua for their contributions to this post.
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