Canada's defence industry is among the most significant sectors hit by the U.S.'s trade action on steel and aluminum.
United States (U.S.) tariffs on Canadian steel and aluminum have chilled cross-border relations and given manufacturers reason for concern. At 25% for Canadian steel products and 10% for aluminum, the tariffs are no small hurdle, and with the Federal Government countering with similar fees on a range of U.S. imports, trade tensions are ratcheting up uncertainty with our most important ally and defence partner.
Canada's defence industry is among the most significant sectors hit by the U.S.'s trade action on steel and aluminum. Shipbuilders, aircraft manufacturers, military equipment suppliers, and members of their supply chains are being challenged to absorb the increased costs of doing business. Many are unable to fill their stocks with domestic supply, and others are locked into multi-year contracts that limit their ability to look elsewhere.
The upside is there are several ways defence industry manufacturers can seek relief. For example, shortly after the federal government announced its own tariffs on U.S. goods, it launched a program through which Canadian companies can apply for targeted relief from surtaxes collected on steel and aluminum products entering the country.
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