Canadian trade surtaxes are in position and active
Many Canadian importers face new tariffs starting July 1, 2018. Canada recently finalized its lists of U.S. steel, aluminum and other products that will be subject to new trade-restrictive surtaxes starting as of this date, and has also released new administrative guidance. Canada originally indicated it would impose 10% and 25% surtaxes or similar trade-restrictive countermeasures on imports of steel, aluminum and other products originating in the United States following a U.S. announcement that it would impose its own tariffs on a wide range of steel and aluminum products imported into the United States from Canada, Mexico and the European Union. Canada has said that these new surtax countermeasures will remain effective until the United States removes its own trade measures against Canada.
Because these new tariffs will increase the costs of raw materials and inputs used in production supply chains, they will negatively affect industries that depend heavily on steel and aluminum products, such as the automotive, heavy machinery and home appliance industries, among others. Companies should review the finalized lists of goods affected by this change and quickly assess the effect of these new tariffs and explore strategies that may help minimize their impact.