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Canada to Impose Surtax Countermeasures against the new U.S. Aluminum Tariffs

President Donald Trump has announced that he will restore a 10% tariff on certain Canadian aluminum imports into the U.S. effective August 16, 2020. These surtaxes are similar to the tariffs that were imposed in July 2018 and later eliminated in May 2019.

In response, Canada will impose dollar-for-dollar surtax countermeasures against imports of aluminum and aluminum-containing products originating from the U.S.

Certain Canadian importers and exporters will be affected by these regulatory measures, as a 10% surtax will be applicable on subject goods, effective September 16, 2020. The surtaxes will not be applicable to U.S. goods which are in transit to Canada on the day when they come into force.

A potential list of aluminum products has been proposed by Global Affairs Canada and Finance Canada, from which the goods subject to surtax will be drawn from.

Some of these goods include the following:

  • Aluminum ore, wire and plates
  • Aluminum structures and parts
  • Aluminum beverage cans
  • Household appliances like refrigerators and washing machines
  • Household items like tinfoil, pots and scouring pads
  • Sports equipment like bicycles and golf clubs
  • Construction material like nails, staples and screws
  • Metal furniture

Canadian businesses will have until September 6, 2020 to submit written comments, inquiries and concerns to to support with their feedback to the Government of Canada, or request for any exclusions of the goods on the potential tariff list.

For further details, reference the source link: Government of Canada

What actions should affected companies take?

  • Assess the impact of the new surtaxes on your imports and exports
  • Evaluate any affected goods against new potential sourcing strategies to avoid the additional surtaxes
  • Examine any trade related risks associated with existing contracts with your suppliers and customers

How can Schenker help?

  • Conduct an impact analysis against your import commodities to assess whether your goods are affected
  • Review your HS codes to identify any potential tariff misclassifications resulting in lower duties
  • If you meet the requirements of the Duties Relief or Duty Drawback programs, you may be eligible for refunds, including surtaxes, which we can assist you with recovering.

Contact our Client Services or Consulting teams for assistance


Canada's Countermeasures on US Aluminum Tariffs