Canada Announces Retaliatory Tariffs On U.S. Imports

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On August 7, 2020, Canada’s Deputy Prime Minister Chrystia Freeland announced that Canada will be imposing retaliatory tariffs on $2.7 billion worth of U.S. imports in response to President Trump’s decision to re-implement a 10% ad valorem tariff on non-alloyed unwrought aluminum from Canada (HTS subheading 7601.10). During a news conference Freeland stated, “We will impose dollar-for-dollar countermeasures in a balanced and perfectly reciprocal retaliation.” These decisions come after the two countries, along with Mexico, recently implemented the USMCA to further facilitate trade.

Following the announcement, the Canadian Department of Finance issued a notice containing a list of over sixty aluminum goods subject to a 10% rate that will take effect on September 16, 2020. According to the notice, interested parties (Canadian companies or Canadian industry associations) should provide written comments by September 6, 2020 to fin.tariff-tarif.fin@canada.ca.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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