Many Canadian importers and exporters face new U.S. tariffs, beginning as early as 1 June 2018. In response to the new tariffs, Canada has announced its own countermeasures to impose surtaxes on imports of steel, aluminum, and other various products.
The United States announced that it will impose a 25% tariff on steel and a 10% tariff on aluminum imports—tariffs that will apply on a range of products imported into the United States from Canada, Mexico, and the European Union.
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, as well as many others.
Companies affected by this change will need to evaluate 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 15 June 2018.
Read a June 2018 report [PDF 185 KB] prepared by the KPMG member firm in Canada