An escalating multi-front trade dispute between the U.S. and many of its biggest trading partners is moving the country closer to a global trade war.
The problems began in March when the U.S launched its first round of tariffs. Subsequent rounds, hitting products made in Canada, Mexico, the EU and China, have been met by equal penalties on U.S. products. Yet the U.S. shows no sign of backing down and is now threatening to impose a new round of tariffs on China.
Learn how we got to this point by reading our Trade War email alerts, presented below in chronological order.
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Toronto, December 20, 2022
The U.S. Trade Representative's (USTR) office has announced a nine month extension of 352 product exclusions in the China Section 301 Investigation that were scheduled to expire December 31, 2022. These Exclusions cover a wide variety of goods, from crab meat to garden furniture.
The extended exclusions are the same as those reinstated on March 28, 2022, as set out in the Federal Register notice, which can be viewed here.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, March 24, 2022
The U.S. Trade Representative's (USTR) office has announced it will be reinstating China Tariff Exclusions on 352 items which expired December 31, 2020. These Exclusions cover a wide variety of goods, from crab meat to garden furniture.
The reinstated product exclusions will be retroactive to October 12, 2021 and extend through December 31, 2022. The USTR may consider further extensions beyond December 31, 2022, as they deem appropriate. Once the Tariff Exclusions are implemented, refund claims may be submitted on qualifying imports to recover the applicable China Tariff paid.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, September 16, 2020
The U.S. Trade Representative's office announced September 15, 2020 it will not proceed with the 10% tariff on Canadian origin aluminum, for which Canada was ready to implement retaliatory countermeasure tariffs effective September 16, 2020.
A statement from the USTR said after "consultations with the Canadian government, the United States has determined that trade in non-alloyed, unwrought aluminum is likely to normalize in the last four months of 2020, with imports declining sharply from the surges experienced earlier in the year." The announcement also stated, "Six weeks after the end of any month during this period, the United States will determine whether actual shipments met expectations. If actual shipments exceeded 105 percent of the expected volume for any month during the four-month period, then the United States will impose the 10 percent tariff retroactively on all shipments made in that month." Expected monthly volumes are laid out in the statement.
Based on this announcement, the corresponding Canadian retaliatory countermeasure tariffs will not be imposed at this time.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 12, 2020
Effective September 25, 2020, goods produced in Hong Kong may no longer be marked to indicate their origin as Hong Kong, but must be marked to indicate China. This change from U.S. Customs and Border Patrol (CBP), published in the Federal Register August 11, 2020, is due to a determination by the U.S. that Hong Kong is no longer sufficiently autonomous and will, therefore, be subject to the same requirements as China.
These goods will also be subject to the additional China Tariff (where applicable), based on the origin change requirement upon entry to the U.S..
At this time it is not known whether Canada will assume the same position with respect to Hong Kong. Where goods are produced in Hong Kong for multiple markets, the origin marking must adhere to regulations of the country of import.
We will provide details as they are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 7, 2020
In response to yesterday’s measures by the U.S. to impose a 10% tariff on Canadian aluminum, the Government of Canada is seeking comments on a proposed list of 10% countermeasure tariffs to take effect by September 16, 2020.
The countermeasures will apply only to goods originating from the U.S., which shall be considered as those goods eligible to be marked as a good of the U.S. in accordance with the Determination of Country of Origin for the Purposes of Marking Goods (CUSMA Countries) Regulations. Once implemented, the countermeasures will remain in place until the U.S. eliminates its tariffs against Canada. The countermeasures will not apply to U.S. goods that are in transit to Canada on the day on which they come into force.
Written comments should be provided no later than September 6, 2020. Submissions, at a minimum, should include the following information:
All comments and general inquiries should be sent to the following email address: fin.tariff-tarif.fin@canada.ca. Only submissions by email will be accepted. Please include the term “Aluminum countermeasures” in the subject line of your submission.
We will provide updates as details are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, August 7, 2020
The United States once again imposed a tariff on Canadian aluminum to take effect August 16, 2020. The 10% tariff will apply to non-alloyed unwrought aluminum of HS tariff classification 7601.10.
Following is an excerpt from the Presidential Proclamation on Adjusting Imports of Aluminum into the United States:
(5) Any imports of non-alloyed unwrought aluminum articles from Canada provided for in subheading 7601.10 that were admitted into a United States foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41 prior to 12:01 a.m. eastern daylight time on August 16, 2020, shall be subject upon entry for consumption on or after such time and date to the 10 percent ad valorem rate of duty imposed by Proclamation 9704, as amended.
The Proclamation also confirms no drawback will be available for these goods upon export from the United States:
(7) No drawback shall be available with respect to the duties imposed pursuant to this proclamation.
In a statement issued by Deputy Prime Minister of Canada, Chrystia Freeland, she said, “In response to the American tariffs, Canada intends to swiftly impose dollar-for-dollar countermeasures.”
We will provide updates as details are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
Toronto, December 13, 2019
The United States Trade Representative (USTR) has announced the U.S. have reached a Phase One agreement with China and the additional tariffs scheduled to become effective December 15, 2019 will not be implemented.
The notice also advises tariffs imposed on $250 Billion of China origin goods will remain in effect at 25%, however, the remaining tariffs ($120 Billion) will be reduced to 7.5% from the current rate of 15%. Those tariffs being reduced were implemented effective September 1, 2019 and referred to as List 4A.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, December 9, 2019
The next round of China tariffs, scheduled to go into effect December 15th, 2019 at 15%, includes cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing. This round covers goods listed in Annex C, also referred to as List 4B of the $300 Billion Trade Action.
As a reminder, importers may request product exclusions from List 4A of the $300 Billion Trade Action until January 31, 2020.
The United States Trade Representative (USTR) have also issued (2) retroactive exclusion lists to the $200 Billion Trade Action in November:
Exclusions Granted November 13, 2019
Exclusions Granted November 29, 2019
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, October 4, 2019
The Office of the U.S. Trade Representative (USTR) has issued their final list of European Union (EU) origin goods to be subject to additional tariffs effective October 18, 2019.
The tariffs are in response to a 15-year battle over aviation subsidies in a World Trade Organization (WTO) dispute against the EU which was awarded to the U.S. this week. The EU is not allowed to retaliate against WTO-authorized countermeasures, however, a similar case filed by the EU against the U.S. is expected to receive a decision in the coming months.
The tariffs being imposed will be 10% on large civil aircraft and 25% on agricultural and other products. The bulk of the tariffs are being applied to goods of France, Germany, Spain and the United Kingdom. The U.S. has the authority to increase the tariffs or products affected at any time.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, September 12, 2019
In a tweet yesterday, U.S. President Donald Trump said the pending China tariff increase from 25% to 30% on roughly $250 billion of China products set to go into effect October 1st, has been postponed until October 15th.
The affected goods may be found on Lists 1, 2 and 3 from the United States Trade Representative (USTR).
The USTR have not yet issued a formal notice of the revised implementation date.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 26, 2019
The United States Trade Representative (USTR) has announced all existing and pending China tariffs are being increased in retaliation of China's response to the next round of tariffs being implemented on $300 billion worth of products imported to the U.S..
Current additional tariffs of 25% on roughly $550 billion of China products will increase to 30%, effective October 1, 2019. The scheduled tariffs of 10% on $300 billion will be assessed at 15%, effective on the already scheduled dates (September 1st and December 15th) for tariff increases on these imports.
The USTR's notice in the link above is reproduced below:
Washington, DC – Today, China announced it will impose unjustified tariffs targeting U.S. products. In response to China's decision, and in order to achieve the objectives of the China Section 301 investigation, President Trump has instructed the United States Trade Representative (USTR) to increase by 5% the tariffs on approximately $550 billion worth of Chinese imports. For the 25% tariffs on approximately $250 billion worth of Chinese imports, USTR will begin the process of increasing the tariff rate to 30%, effective October 1 following a notice and comment period. For the 10% tariffs on approximately $300 billion worth of Chinese imports that the President announced earlier this month, the tariffs will now be 15%, effective on the already scheduled dates for tariff increases on these imports.
The United States Trade Representative (USTR) has not yet issued a Federal Register Notice.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 14, 2019
The U.S. has announced some of the new 10% tariffs on $300 billion of Chinese imports, scheduled to become effective September 1, 2019, will be delayed until December 15, 2019.
Products being postponed until December include cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.
The list of tariffs on the $300 billion has now been split into the following:
List 4A (Effective September 1, 2019)
List 4B (Effective December 15, 2019)
Meanwhile, certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face the additional tariffs of 10% – the list is pending issuance by the USTR.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 2, 2019
In a series of tweets yesterday, President Donald Trump said the U.S. will impose a 10% tariff on the remaining $300 billion worth of imports from China, known as list four, beginning September 1st.
"Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25 per cent," Trump tweeted.
The United States Trade Representative (USTR) has not yet issued a Federal Register Notice.
Trump said the negotiations between the two nations will continue, however, China has vowed to retaliate if the additional tariffs are implemented.
We will provide updates as details are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, July 3, 2019
In a sideline meeting at the G-20 summit in Osaka, Japan this past weekend, U.S. President Donald Trump and Chinese President Xi Jinping agreed to resume trade talks that had broken down in May.
Trump and Xi have reached a temporary agreement that the U.S. will not put additional tariffs on another $300 billion worth of goods pending quality trade negotiations. It is anticipated that Trump will provide a six month deadline to reach an agreement, which would not see the additional tariffs being imposed until the end of the year.
Updates will be issued as the situation evolves.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, July 2, 2019
The Office of the U.S. Trade Representative (USTR) will hold a public hearing on August 5, 2019 concerning the addition of a supplemental list of proposed tariffs against the European Union (EU). The tariffs are proposed in order to enforce U.S. rights in the World Trade Organization (WTO) dispute against the EU regarding their subsidies on large civil aircraft.
The additional list adds 89 tariff subheadings with an approximate trade value of $4 billion to the initial $21 billion list published on April 12, 2019. USTR is adding to the initial list with the supplemental list in response to public comments and additional analysis.
The due date for submission of requests to appear is July 24, 2019, with written comments due on August 5, 2019. The hearing is to take place at the U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, June 18, 2019
The Office of the U.S. Trade Representative (USTR) will hold public hearings from June 17 to June 21, 2019 and, next week, from June 24 to June 25, 2019, regarding proposed tariffs on approximately $300 billion worth of Chinese products.
The hearings are taking place at the U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.
The proposed tariffs are a supplemental action in response to China's unfair trade practices related to technology transfer, intellectual property, and innovation, based on the findings in USTR's investigation of China under Section 301 of the Trade Act of 1974.
The list of hearing dates and scheduled witnesses can be viewed here.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, June 10, 2019
President Donald Trump tweeted Friday night that the U.S. and Mexico had reached a deal on immigration and security and the Mexico tariffs of 5%, due to take effect today, have been indefinitely suspended.
In another tweet this morning, Trump advised the deal needs to pass a vote by Mexico's legislative body and if not approved, the tariffs will be forthcoming.
Updates will be issued as the situation evolves.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 31, 2019
U.S. President Donald Trump has threatened to impose escalating tariffs on all imports from Mexico to the U.S.. A 5% tariff will take effect on June 10, 2019, with the rate increasing the first of each month until October 1, 2019, to a final rate of 25%.
The tariffs will be reduced or removed if Mexico takes action to "reduce or eliminate the number of illegal aliens" crossing into the U.S., the White House said in a statement.
The official statement from the White House, issued May 30, 2019, outlines the tariff structure along with detailed measures which must be implemented in order for the tariffs to be reduced or removed.
We will provide updates as details are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 17, 2019
A long-awaited trilateral deal has been reached between Canada, the U.S. and Mexico to end the steel and aluminum tariffs, referred to as the Section 232 Duties.
The deal applies to the tariffs the U.S. imposed last June (25% on imports of steel and 10% on aluminum) by citing national security, as well as Canada's retaliatory tariffs on steel, aluminum and as other U.S. origin consumer products.
Prime Minister Justin Trudeau and President Donald Trump are expected to issue formal announcements today with the tariff elimination to become effective 48 hours after Trump signs the official U.S. Proclamation.
We will provide updates as details are available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 14, 2019
In the latest round of the trade war between the USA and China, President Donald Trump has issued the $300 billion list of proposed goods for comment prior to implementation of a 25% China tariff. The official notice, complete with a list of HS tariff classifications, has been issued by the United States Trade Representative (USTR).
This round of potential tariffs covers most remaining un-tariffed goods from China, e.g. food, books, glassware, computers, clothing, toys, etc.. If this list goes through, 96% of Chinese origin goods entering the USA will have become subject to a 25% tariff.
Interested parties may submit written comments to the USTR by June 17, 2019 as outlined in the notice.
After U.S. tariffs were raised on Chinese products with a value of $200 billion last week, China retaliated with increased tariffs against 5,140 U.S. products entering China, such as honey, vegetables, coffee and various meats representing $60 billion of goods. A representative for Beijing says, "We are determined and capable of safeguarding our legitimate rights and interests. We hope the United States will meet China halfway to address each other's legitimate concerns. Further retaliation is expected from China. Updates will be issued as the situation evolves.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 10, 2019
President Donald Trump implemented the China tariff increase at 12:01 am today raising the 10% Section 301 Tariffs on $200 billion of Chinese goods to 25%. The official notice was issued by the United States Trade Representative (USTR).
The increased tariff applies to a specific list of China origin goods exported to the U.S. on or after May 10, 2019.
Goods that were exported to the U.S. prior to May 10, 2019, will be subject to the 10% tariff, in effect at time of shipping, as long as they are entered into the U.S. prior to June 1, 2019. Should these shipments enter the U.S. after June 1, 2019, they will be subject to the higher 25% tariff.
Additionally, in a tweet this morning, Trump stated "the process has begun to place additional tariffs at 25% on the remaining $325 billion dollars" referencing the remaining imports of China origin goods entering the U.S. not currently subject to tariffs. Beijing vows to retaliate against the U.S.. Updates will be issued as the situation evolves.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 6, 2019
U.S. President Donald Trump is threatening to raise U.S. tariffs on China imports, effective Friday May 10. That means China imports currently assessed a 10% tariff would increase to 25%. Trump is also threatening to apply a 25% tariff on a widened range of Chinese products with a total value of $325 billion. China is now considering cancelling trade talks which were set to resume Wednesday in Washington D.C.. Updates will be issued as the situation evolves.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, April 10, 2019
The United States Trade Representative (USTR) has proposed $11 billion in tariffs against the European Union in an announcement made April 8, 2019. The tariffs are in response to the EU's Airbus subsidies which have been deemed to be unfair to the United States by the World Trade Organization (WTO).
The USTR released for public comment a preliminary list of EU products to be covered by additional duties. The amount is subject to an arbitration at the WTO, the result of which is expected to be issued this summer.
This preliminary list of goods, covering a wide range of items from seafood to jets, has been issued for public consultation. For example, the following are being considered for additional tariffs if they come from any of the 28 EU states.
Also, additional import duties are being considered on some goods if they are produced in France, Germany, Spain or the UK. They include:
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, April 1, 2019
Higher Canadian tariffs on U.S. made products could be coming soon if the Trump administration refuses to end the additional tariffs on Canadian made steel (25%) and aluminum (10%), introduced last June.
Prime Minister Justin Trudeau and Foreign Affairs Minister Chrystia Freeland say the U.S. tariffs should be removed because they are both "illegal" and "unjust". U.S. President Donald Trump says the tariffs are necessary to correct a trade imbalance between Canada and the U.S.. When Canada first retaliated, the government described the counter-measures as "dollar-for-dollar" when compared with the U.S. tariffs, but sources say the dollar value actually falls significantly short of that threshold.
Even bigger problems could be ahead if the impasse on tariffs causes law makers on both sides of the border to vote against approval of the NAFTA update, a necessary step to implement the new trade agreement.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, February 25, 2019
There will be no increase in U.S. tariffs on China imports, U.S. President Donald Trump has announced. This means the additional U.S. tariff on $200 billion of Chinese-made products will remain at 10%, pending a meeting between the national leaders at a Trump vacation property in Florida. No date has been announced. The plan was to hike the rate to 25% on March 1.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905 882-4880, ext. 213.
Toronto, February 12, 2019
A solution to the current trade dispute between the United States and China is uncertain with just two weeks left before the U.S. increases tariffs on China that would raise the duty on $200 billion worth of Chinese goods to 25% from 10%, effective March 2.
Negotiations continue, but a rumoured meeting between the respective heads of state is not going to happen, according to U.S. President Donald Trump. Trump told reporters on Tuesday during a cabinet meeting that he would consider extending a March 1 deadline to close a trade deal before raising tariffs on Chinese products. "I could see myself letting that slide for a while if we're close to a deal."
China has promised to retaliate if the U.S. goes ahead with the tariff increases, sparking fears that both countries are on the road to a
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, February 8, 2019
Approval of the USMCA/CUSFTA should only happen if Section 232 tariffs on imports of steel and aluminum products from Canada and Mexico are eliminated, says Canadian Foreign Affairs Minister Chrystia Freeland. The Provinces are taking the same position as they are very concerned about the negative impacts of the tariffs on Canadian workers and industry.
Opposition is also growing in the U.S., where U.S. trade associations say the tariffs – and Canada's retaliatory duties – are causing more harm than good.
Some have suggested progress would be possible if Canada agreed to drop its retaliatory tariffs first, but Freeland said this is unlikely.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, December 21, 2018
The Government of Canada has provided additional relief for Canadian manufacturers who now have to pay more for U.S. steel and aluminum because of tariffs Canada imposed in response to U.S. tariffs on Canadian steel and aluminum. The relief, known formally as the United States Surtax Remission Order, covers certain steel, aluminum and other goods as identified in the list provided by the Department of Finance.
A second form of relief allows Canadian importers of seven steel products to apply for remission of "provisional safeguard surtaxes" imposed by the Canadian government on October 25, 2018. The applicable products include heavy plate, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel, stainless steel wire and wire rod that was in transit to Canada prior to October 25, 2018. Please refer to CBSA's Customs Notice 18-24 "Provisional Safeguards – In-transit Steel Goods Remission Order" for additional details.
Learn more by reading the following pages on our website:
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, December 3, 2018
U.S. President Donald Trump has postponed a planned tariff increase on Chinese products. In exchange, China will buy more U.S. made farm, energy and industrial goods.
The change in plans means U.S. tariffs on $200 billion in Chinese products will not jump from 10% to 25% on January 1, 2019. This decision could be reversed, however, if there are no changes in Chinese trade policy, with the top U.S. priorities being elimination of forced technology transfers, trade secret theft and non-tariff trade barriers, to which President Trump and President Xi have agreed to immediately begin negotiations.
Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10% tariffs will be raised to 25%.
The full list of goods subject to the 10% tariff are available here along with Saturday's statement from the White House.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, September 18, 2018
The U.S. has announced it will implement tariffs on roughly $200 billion of imports from China, effective September 24 2018. The 10% tariff will last until January 1, 2019, when the tariff rate will increase to 25%. An additional list of tariffs, covering imports worth $267 billion, will be enacted if China follows through on its promise to retaliate against the U.S. with $60 billion in tariffs effective the same date.
The White House says the tariffs are necessary because China has refused to stop its "unfair policies and practices relating to United States technology and intellectual property – such as forcing United States companies to transfer technology to Chinese counterparts. These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy."
The current list of tariffs being implemented against Chinese goods imported into the U.S. on September 24th, 2018 are available here.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 23, 2018
As U.S. and Chinese officials are currently conducting mid-level trade talks in Washington D.C., the list of 25% tariffs, announced by the Trump Administration on August 10th, were implemented today on roughly $16 billion of Chinese goods.
The list of 279 HS tariff classifications includes plastics, semiconductors, electronic integrated circuits, motorcycles, and railway and farm equipment.
The Chinese government has imposed a 25% tariff on $16 billion of U.S. imports today as well.
The world's two largest economies have now slapped tit-for-tat tariffs on a combined $100 billion in products since early July, with more in the pipeline, adding to risks to global economic growth.
Updates will be issued as new information becomes available.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 20, 2018
The Federal Government is asking for input, by August 29, 2018, on emergency safeguards it is considering to stop a surge of cheap foreign steel imports entering Canada. The products in question include:
They are flooding into the Canadian market because the makers want to avoid tariffs imposed by the U.S..
The proposed safeguards would give the Federal Government the power to stop the surge by imposing limits on the amount of steel imported into Canada. The impact would be immediate because the government could enact the restrictions without first getting a ruling by the International Trade Tribunal on the legitimacy of the tariffs, which would happen at some later date.
Some stakeholders, including the construction industry, downstream fabricators and manufacturers, oppose the safeguards, mainly because they believe the new trade restrictions will lead to higher prices.
Canada's approach may be similar to the European Union which set import quotas on 23 types of steel products last month. In the EU, a tariff of 25% will be applied when the volume of imports exceeds the average amount of imports in the preceding three years. The quota is allocated on a first-come-first served basis, rather than discriminating against any individual country.
Canadian Finance Minister Bill Morneau says the Federal Government will do whatever is necessary to protect Canadian steel makers against unfair competition. He added that the dispute is not directly related to the ongoing NAFTA renegotiation. Canada wants to avoid being accused by the U.S. of being a back door for cheap steel, where the true origin of steel is hidden by moving it to another country before it enters the U.S.. For example, steel made in China could be shipped to Canada, where it is disguised or falsified prior to being shipped in to the U.S..
Updates will be issued as the situation develops.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 15, 2018
The United States has doubled its tariffs on steel and aluminum made in Turkey after that country refused to release a detained American pastor. The pastor, who has lived in Turkey for two decades, was arrested in 2016 for being a "terrorist" and participating in the failed coup against President Recep Tayyip Erdogan.
U.S. President Donald Trump said he authorized the new duties, 20% for aluminum and 50% for steel, to punish Turkey for refusing to release the pastor. Turkey has responded with increased tariffs on U.S. products (120% on American cars, 140% on alcoholic drinks, and 60% on leaf tobacco). Tariffs on rice, cosmetics and coal will also be doubled.
The U.S. was the fourth largest source of imports to Turkey last year, accounting for $12 billion of imports, while Turkey's exports to the United States last year amounted to $8.7 billion, making it Turkey's fifth-largest export market.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, August 10, 2018
The Trump administration has announced a new list of tariffs on roughly 16 billion Chinese goods to take effect August 23.
Only five product items were deleted from what was initially proposed on June 15. Semiconductors, among the largest categories, remain on the list. Other products that will be subject to the hefty duties include electronic integrated circuits, motorcycles, and railway and farm equipment.
A trade representative for U.S. President Donald Trump also said the $200 billion proposed list of tariffs , of June 20, is being increased from 10% to 25% to heighten pressure on China to drop "its harmful policies and behavior."
In response, the Chinese government said it will impose a 25% tariff on 333 categories of U.S. products, including coal, bicycles, trucks and vehicle engines and chemicals, that will go into effect the same day.
Updates will be issued as new information becomes available.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, July 12, 2018
The Trump administration is threatening to launch a second round of tariffs on Chinese goods, with a total value of $200 billion.
On July 10th, U.S Trade Representative Robert Lighthizer released a list of thousands of additional goods that could face 10% tariffs after a public comment period, which includes fruit and vegetables, handbags, refrigerators, furniture, baseball gloves and automotive parts and accessories.
The tariffs will not go into effect immediately but will undergo a two-month review process, with hearings August 20-23 at the U.S. International Trade Commission in Washington, DC.
The move comes after the United States imposed 25% tariffs on Chinese goods worth $34 billion last Friday. Beijing immediately responded with its own tariffs on U.S. goods worth $34 billion. Tuesday's action makes good on a statement President Donald Trump made last month. He directed Lighthizer to identify $200 billion in Chinese goods for tariffs that would significantly impact China's economy, if China retaliated against U.S. penalties that are meant to punish the country for intellectual property theft.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, June 29, 2018
On June 29, 2018, the Government of Canada released its final list of tariff items that will be applied as retaliatory tariffs to U.S. steel, aluminum and other products. These countermeasures are in response to the 25% Steel Tariff and the 10% Aluminum Tariff applied by the U.S. to Canadian origin goods. The countermeasures will come into effect on July 1 and remain in place until the U.S. removes its trade measures against Canada.
The list is a must-read for all importers as the "other products" range from yogurt to ball point pens and not just steel and aluminum.
This final list has been issued after the Canadian Government took into consideration feedback received from Canadians through over 1,000 submissions during public consultations. The countermeasures being imposed amount to C$16.6 billion in imports of steel, aluminum, and other products from the U.S., representing the value of 2017 Canadian exports affected by the U.S. tariffs.
The Canada Border Services Agency (CBSA) have issued Customs Notice 18-08, United States Surtax Order (Steel and Aluminum) and United States Surtax Order (Other Goods) to provide detailed information concerning the application and administration of the surtaxes.
Of particular note:
As well, Global Affairs Canada released Canada stands up for our steel and aluminum workers and industry providing statements, facts, and additional background information on today's announcements.
The House of Commons Standing Committee on International Trade held a hearing on June 26, 2018 regarding the impacts of US tariffs on steel and aluminum on Canadian businesses and workers, including steel companies, trade associations, and representatives from organized labour.
As a result of limited time for witnesses to be heard, the House of Commons Standing Committee on International Trade is asking that interested parties submit a brief through their online form by July 31, 2018, outlining thoughts about the impacts of US Section 232 tariffs on Canadian businesses and workers.
If you would like to engage our Customs Consulting team, please contact me at (905) 882-4880, ext. 213 to discuss available services, including a Duty Impact Study.
Toronto, June 26, 2018
A worldwide trade war is just days away as the U.S. and its major trading partners impose – or threaten – ever widening tariffs.
Canada and China are both set to impose additional tariffs against the U.S., while the U.S. is promising to implement $100 billion worth of additional tariffs against products from China. The EU implemented their tariffs against the U.S. on June 22.
Tariffs impede global trade by making goods more expensive. But it appears the U.S. is committed to forcing the hand of its greatest allies and competition alike, in an effort to either strengthen American manufacturing or negotiate better trade deals.
Here is a breakdown of the new tariffs by country/region:
| Canada | The Canadian government is imposing tariffs against select U.S. made goods at either 25% (Table 1) or 10% (Table 2), effective July 1 (Canada Day). They will apply to $12.8 billion worth of products, ranging from raw steel to chocolate, produced in pro Trump states. Canada says the tariffs are necessary to counter balance the impact of tariffs applied by the U.S. June 1 on Canadian-made Steel and Aluminum. |
| EU | The European Commission in Brussels has approved a 25% duty on 2.8 billion euros (US$3.2 billion) of U.S. made products the EU imports, including Harley-Davidson Inc. motorcycles, Levi Strauss & Co. jeans and bourbon whiskey. A separate 10% levy is being applied to U.S. playing cards imported into the bloc. The impact was almost immediate as Harley Davidson has already announced it is moving some manufacturing out of the U.S. to avoid the new tariffs applied by the EU. |
| China | In direct response to U.S. tariffs on Chinese products, China's Ministry of Commerce has announced it will impose, effective July 6, a 25% tariff on U.S. products with a total value of US$34 billion. The targeted products include auto and dairy products. Additional tariffs on oil, chemical and medical equipment, totaling US$16 billion, could follow, but the date of implementation has not been announced. U.S. exports $1 billion worth of crude oil to China monthly. |
| USA | After hearing about the Chinese tariffs on U.S. products, President Trump promised to implement in July retaliatory tariffs on China products, with an additional list of products to undergo public comment, having a total value of $50 billion. The proposed tariffs have already been countered and re-countered and the U.S. is now threatening an additional $200 billion in tariffs if China does not back down. |
U.S. President Trump says he is imposing tariffs to correct unfair trade practices and protect U.S. jobs. Critics say his actions will lead to the opposite: the loss of U.S. jobs, particularly in states that make products subject to counter tariffs.
More developments are likely as we get closer to the date when pending tariffs are enacted.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 31, 2018
Exemptions for Canada, Mexico and the European Union to the U.S. Steel and Aluminum Tariffs will expire at midnight tonight and are not being extended as per U.S. Secretary of Commerce Wilbur Ross' announcement earlier today.
U.S. Steel (25%) and Aluminum (10%) Tariffs apply to the following imports into the U.S. from Canada, Mexico and the EU beginning at 12:01 am June 1st, 2018:
The steel duties will be applied at the six digit level to the following tariff numbers: 7206.10 through 7216.50, 7216.99 through 7301.10 (includes ingots, bars, rods, sheets and wire), 7302.10, 7302.40 through 7302.90 and 7304.10 through 7306.90 (includes rails, pipes, and tubes).
The aluminum duties will be applied to the following tariff numbers: (a) unwrought aluminum (HTS 7601); (b) aluminum bars, rods, and profiles (HTS 7604); (c) aluminum wire (HTS 7605); (d) aluminum plate, sheet, strip, and foil (flat rolled products) (HTS 7606 and 7607); (e) aluminum tubes and pipes and tube and pipe fittings (HTS 7608 and 7609); and (f) aluminum castings and forgings (HTS 7616.99.5160 and 7616.99.5170).
In the wake of this announcement, Canada, Mexico and the EU have all issued retaliatory measures against the U.S.
Canada:
Tariffs of 25 per cent or similar "trade-restrictive measures" to the following list of items, which includes:
And a 10 per cent surtax or similar "trade-restrictive measures" will be added to the following list of items, which includes:
Mexico:
Will impose measures equivalent to various products such as flat steels (hot and cold laminates, including coated and various tubes), lamps, legs and pork vanes, sausages and food preparations, Apples, grapes, blueberries, various cheeses, among others, up to an amount comparable to the level of the affectation.
EU:
A 10-page list of products subject to additional duties, including:
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, May 1, 2018
Temporary tariff exemptions on imports of steel and aluminum into the U.S. from multiple countries, including Canada, have been extended for 30 days. The other countries involved include Mexico and the member countries of the European Union (EU). The White House's original plan, announced in March, was to apply tariffs of 25 per cent on imported steel and 10 per cent on imported aluminum from all countries. However, the announcement was quickly revised after the stock market dropped 2% and many influential U.S. politicians spoke out against the tariffs, suggesting that Canada, Mexico and the EU be made exempt.
Varying degrees of progress is being made with other countries:
Canada and EU countries have announced that they will retaliate if the threatened U.S tariffs are implemented.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905 882-4880, ext. 213.
Toronto, April 30, 2018
The countdown is on to find out whether Canada will face steep U.S. tariffs on steel and aluminum.
U.S. President Donald Trump imposed a 25 per cent tariff on steel imports and a 10 per cent tariff on aluminum in March, but granted temporary exemptions to certain countries. In the case of Canada and Mexico, Trump's administration tied the issue to the North American Free Trade Agreement.
That exemption period officially ends May 1, and it is not clear whether the White House will extend Canada's exemption.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905 882-4880, ext. 213.
Toronto, April 6, 2018
As part of the U.S. response to China's unfair trade practices related to the forced transfer of U.S. technology and intellectual property, the Office of the U.S. Trade Representative (USTR) published a proposed list of products, imported into the U.S. from China, that could be subject to additional 25% import tariffs.
The proposed list covers approximately 1,300 separate tariff lines and will undergo further review in a public notice and comment process, including a hearing. After completion of this process, the USTR will issue a final determination on the products subject to the additional duties.
Additionally, President Trump announced last night the U.S. is considering additional tariffs on another $100 Billion of Chinese goods. "In light of China's unfair retaliation, I have instructed the [United States Trade Representative] to consider whether $100 Billion of additional tariffs would be appropriate," the President said in a statement. The Chinese government responded by reiterating that it does not want "to fight a trade war, but we are not afraid of fighting it."
Watch for updates on this once further details from the USTR are issued.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, March 22, 2018
U.S. President Donald Trump signed a memorandum this afternoon, announcing trade actions against China, invoking Section 301 of the 1974 Trade Act, which formed the basis for the Administration's investigation.
If implemented, the tariff package would be one of the broadest sets of economic actions imposed by a modern U.S. President against China and could draw retaliation, fraying the trade partnership between two of the world's largest economies.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, March 9, 2018
Tariffs announced last night by the U.S. government, on imports of certain steel and aluminum products into the USA, will apply to all countries except Canada and Mexico. They could still be implemented, however, if negotiations on NAFTA are not concluded in a manner that satisfies the U.S.. Earlier announcements had indicated that the tariffs, 25% on steel and 10% on aluminum, would be applied globally with no exception, sparking fears of a worldwide trade war.
Affected countries have indicated they will retaliate by placing their own tariffs on iconic U.S. products manufactured in key Republican states. There is wide spread domestic and international opposition to the tariffs, set for implementation on March 23, 2018, with most critics saying the effort to protect U.S. manufacturers of steel and aluminum will ultimately lead to higher prices and job losses – not the reverse.
Following are excerpts from each of the Presidential Proclamations identifying the HS Tariff Classifications which will be subject to the new tariffs (watch for future notices once the 2018 U.S. Customs Tariff has been updated with specific origin requirements):
Presidential Proclamation on Adjusting Imports of Steel into the United States:
(1) For the purposes of this proclamation, "steel articles" are defined at the Harmonized Tariff Schedule (HTS) 6 digit level as: 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90, including any subsequent revisions to these HTS classifications.
(2) In order to establish increases in the duty rate on imports of steel articles, subchapter III of chapter 99 of the HTSUS is modified as provided in the Annex to this proclamation. Except as otherwise provided in this proclamation, or in notices published pursuant to clause 3 of this proclamation, all steel articles imports specified in the Annex shall be subject to an additional 25 percent ad valorem rate of duty with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018. This rate of duty, which is in addition to any other duties, fees, exactions, and charges applicable to such imported steel articles, shall apply to imports of steel articles from all countries except Canada and Mexico.
Presidential Proclamation on Adjusting Imports of Aluminum into the United States:
(1) For the purposes of this proclamation, "aluminum articles" are defined in the Harmonized Tariff Schedule (HTS) as: (a) unwrought aluminum (HTS 7601); (b) aluminum bars, rods, and profiles (HTS 7604); (c) aluminum wire (HTS 7605); (d) aluminum plate, sheet, strip, and foil (flat rolled products) (HTS 7606 and 7607); (e) aluminum tubes and pipes and tube and pipe fitting (HTS 7608 and 7609); and (f) aluminum castings and forgings (HTS 7616.99.51.60 and 7616.99.51.70), including any subsequent revisions to these HTS classifications.
(2) In order to establish increases in the duty rate on imports of aluminum articles, subchapter III of chapter 99 of the HTSUS is modified as provided in the Annex to this proclamation. Except as otherwise provided in this proclamation, or in notices published pursuant to clause 3 of this proclamation, all imports of aluminum articles specified in the Annex shall be subject to an additional 10 percent ad valorem rate of duty with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018. This rate of duty, which is in addition to any other duties, fees, exactions, and charges applicable to such imported aluminum articles, shall apply to imports of aluminum articles from all countries except Canada and Mexico.
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Toronto, March 5, 2018
Plans to introduce new tariffs on imports of steel and aluminum into the U.S. were announced last week by U.S. President Donald Trump. The proposed tariffs would be 25% for steel and 10% for aluminum. No other details were released, but the President did indicate the tariffs will be implemented "for a long time" to protect U.S. manufacturers of steel and aluminum.
The announcement raised fears of a trade war as several affected countries, including Canada, have already indicated that they will retaliate if the tariffs are implemented.
Canada is the number one supplier of steel to U.S. importers, accounting for 16 per cent of total imports, or more than four million tonnes. But Canada has not been targeted by Commerce Secretary Wilbur Ross, the architect of the proposed tariffs.
Opposition is building worldwide, as many organizations believe the tariffs are a counterproductive measure that will lead to higher prices and lost jobs.
While there does not yet appear to be any exemption to the tariffs for Canada, United Steelworkers (USW) International President Leo W. Gerard issued this statement following a session the President hosted at the White House:
"Canada is not the problem. The United States and Canada have integrated manufacturing markets and our union represents trade-impacted workers in both nations. In addition, the defense and intelligence relationship between the countries is unique and integral to our security. Any solution must exempt Canadian production. At the same time, Canada must commit to robust enforcement and enhance its cooperation to address global overcapacity in steel and aluminum."
For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.
Tip #14 – Don't just insure the value of the goods
When insuring your freight, you are fully entitled to value your goods at a price above the base cost. Valuation of goods may include all freight charges, related costs, plus 10% (or more) to cover the administrative burden of processing a claim and to cover the insured's profit. Since duty is still payable on damaged goods, make sure you insure the amount of duty as well.
When insuring your freight, you are fully entitled to value your goods at a price above the base cost. Valuation of goods may include all freight charges, related costs, plus 10% (or more) to cover the administrative burden of processing a claim and to cover the insured's profit. Since duty is still payable on damaged goods, make sure you insure the amount of duty as well.
Here's an example:
| Value of goods: | $10,000.00 | |
| Duty: | $800.00 | |
| Freight Costs: | $2,000.00 |
|
+10% (administrative and profit) |
$1,280.00 |
|
Insured Value: |
$14,080.00 |
This tip on how to properly insure your shipments is brought to you by David Lychek, Manager – Ocean & Air Services. For more information or to request assistance with a shipment, call 905-882-4880, ext. 207 and ask to speak with David Lychek.
