Tariff Adjustments:
- There is a 10% tariff on potash in contrast to the 25% on most non-USMCA compliant goods
- Vehicles made in compliance with the USMCA get a 30-day tariff exemption
- There is a temporary exception for shipments valued at less than $800 from Canada (this will change once there are adequate tariff collection systems in place)
- Many derivative products using steel and aluminum are impacted. Specifics can be checked at the two previous hyperlinks.
USMCA Compliant Goods:
- Only 38% of Canadian exports currently qualify as USMCA compliant, although there is potential for this amount to increase1.
- List of goods subject to March 4 tariffs. Copy of USMCA.
Canadian retaliatory tariffs:
- The federal government is moving forward with its initial plan for 25% retaliatory tariffs. Currently, they only apply to a list of goods worth $30 billion, but this will eventually increase to $155 billion worth of imported goods if tariffs are not lifted. This is in response to the first set of tariffs that came into play March 4th.
- The federal government has launched a remission framework to help importers who may need transitional relief.
- The government is in the process of announcing additional retaliatory tariffs to the 25% on steel and aluminum that came into place today. These cover $12.6 billion in steel products, and $3 billion in aluminum, in addition to other products such as computers, sports equipment, cast iron goods.
- Finance Canada is holding consultation on what products are to be taxed as part of our retaliatory measures. The list of potential goods can be found here and you can provide feedback The Canadian Chamber of Commerce is asking for feedback, as well, to understand membership priorities.
1 - Many Canadian exports to America had previously been filed under MFN (Most Favoured Nation) Tariffs. These are the agreed upon rate that nations within the WTO apply to each other, and many Canadian exporters had kept their goods filed under this category as there was little previous difference between being MFN or USMCA Compliant. There is a chance that up to 85% of our exports could reach USMCA compliant status, as they already comply with the regulations. However, Trump has only waived tariffs on these goods until April 2nd, a tight turn around to change tariff filing and a period of time that could be insignificant in the long run should these tariffs be long-lasting.