The administration faces steep legal headwinds. Having already lost at the Supreme Court over the misuse of the IEEPA, the courts are likely to view Section 338 with significant skepticism.

The statutory requirements of Section 338—specifically requiring a formal finding of discriminatory disadvantage against U.S. goods (hard to prove under CUSMA’s preferential framework) and strictly "offsetting" remedies—make the sweeping 50% broad-based tariffs legally vulnerable.

Likely Outcome in Court: A federal court will likely grant an injunction temporarily staying the tariffs pending a full review, or strike them down entirely as exceeding executive statutory authority under Article I of the Constitution.