Many Canadian importers and exporters face punitive new tariffs that will start as early as June 1, 2018.
The United States recently announced that it will impose a 25% tariff on steel and a 10% tariff on aluminum imports that will apply on a wide range of products imported into the United States from Canada, Mexico and the European Union. In response to the new tariffs, Canada has announced its own countermeasures to impose surtaxes on imports of steel, aluminum and other various products.
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 affected by this change should take action to quickly assess the effect of these new tariffs and explore strategies that may help minimize their impact. Companies may also want to consider making a submission to Canada's Department of Finance on the new surtaxes, which it is accepting until June 15, 2018.
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