Canada imposes up to 50% tariffs on U.S. goods

Canada brought new retaliatory tariffs on selected U.S. goods into force at 12:01 a.m. Eastern on Tuesday, widening a trade fight that had already spread across metals, autos and consumer products. The new Canadian surtaxes apply at rates of 15%, 25% and 50% on goods originating in the United States, according to Finance Canada and the Canada Border Services Agency. Ottawa said the measures were a response to U.S. tariffs imposed on Canadian exports, with the Canadian rates set to match the corresponding U.S. rates on covered goods. The immediate trigger was a new Canadian package announced in late August and activated on September 8, but the political backdrop tightened further on September 7 when President Donald Trump said Bombardier would no longer be allowed to sell jets in the United States unless it built them there. Reuters reported that Trump’s threat came hours before Canada’s new tariffs took effect. (canada.ca) ### Which U.S. goods are covered by the new Canadian tariffs? Finance Canada said the updated list covers products drawn from goods targeted by U.S. Section 338 and Section 232 tariffs. The government’s published tariff schedules show the measures span hundreds of tariff lines and include steel and aluminum products, furniture, appliances, dairy products such as cheese, fish and seafood, clothing, cosmetics and paper goods. (canada.ca) The rates are not uniform across categories. Finance Canada said some goods face 15% duties, others 25%, and others 50%, depending on the tariff item and the matching U.S. treatment. Goods subject to 50% counter-tariffs include some steel and aluminum products that had previously been subject to 25% Canadian counter-tariffs, the department said. (canada.ca) ### Where does the “up to 50%” figure come from? The 50% figure comes from official Canadian tariff notices, not just market commentary. Finance Canada said on August 25 that Canada would impose counter-tariffs of 15%, 25% and 50% effective September 8, with “individual product rates based on the matching U.S. rate for the same goods.” The CBSA repeated that structure in Customs Notice 26-23, which took effect the day before implementation. (canada.ca) Al Jazeera and Reuters, citing the Canadian measures, reported that the package covers roughly $20 billion of U.S. goods, while Finance Canada framed the move as a match to the U.S. decision to impose a 50% tariff on C$27.6 billion of Canadian goods effective August 22. ### How does Bombardier fit into a broader tariff dispute? (canada.ca) Trump’s September 7 comments on Bombardier did not create the tariff package, but they escalated the dispute as the Canadian measures were about to begin. Reuters reported that Trump said Bombardier would have to manufacture in the United States to keep access to that market. CNBC reported that Bombardier responded by pointing to its existing U.S. footprint. (aljazeera.com) Ottawa’s formal explanation for the tariffs was broader than Bombardier alone. Finance Canada said the countermeasures were intended to answer U.S. tariffs and to protect Canadian workers, producers and manufacturers affected by those duties. (msn.com) ### How are importers supposed to use the new rules? The Canada Border Services Agency said the surtax applies to certain goods originating in the United States and directed importers to the published tariff-item lists. Finance Canada has also published a remission process for companies seeking exceptional relief from the tariffs on certain goods from the United States. (canada.ca) The practical next step is administrative. Importers now have the September 8 effective-date lists, the CBSA customs notice and Finance Canada’s remission framework to determine whether a shipment falls under the 15%, 25% or 50% rates and whether any relief can be requested. (cbsa-asfc.gc.ca)