The President plans to institute the new Canadian tariffs under the long-dormant Section 338 of the Tariff Act of 1930. While the Canadian tariffs will likely face legal challenges, the good news is, both sides seem willing to negotiate, and many experts feel the 50% tariffs are likely only leverage for those negotiations. But the Section 301 tariffs are more likely to remain in effect. How businesses can prepareWhile businesses have been living with 10% tariffs for some time, some of those will increase and the prospect of 50% tariffs on Canadian goods may be enough for businesses to rethink supply chains. Small businesses filed a lawsuit over the Section 301 tariffs on the day they were announced, calling them overly broad.