Canada’s Response to US Steel and Aluminum Tariffs Includes Tariffs on Gas Furnaces
HRAI has provided several updates on the evolving Canada-US trade relationship, showing how we’ve been listening to members through webinars, and calling for the government of Canada to negotiate vigorously and creatively to avert tariffs, while also providing advice to the government if retaliatory measures are found to be necessary. More information on that work is available on HRAI’s website (click here).
Canada started with a $30 billion list of tariffs that largely excluded HVACR sector products (with a few exceptions), that started March 4. Canada then provided a second, $125 billion list of proposed products that does include some HVAC products, proposed for April 2. There is a 21-day consultation period that will allow industry to comment on this list.
On March 13, Canada announced a 3rd list of tariffs in response to US steel and aluminum tariffs (on Canadian exports to the US) on equipment under HS codes 73.22.11, 73.22.19, and 73.22.90.
HRAI has heard that some members are being required to pay Canadian tariffs on gas furnaces, with documentation using the Harmonized System (HS) tariff code 73.22. That code uses the following description:
73.22 - Radiators for central heating, not electrically heated, and parts thereof, of iron or steel; air heaters and hot air distributors (including distributors which can also distribute fresh or conditioned air), not electrically heated, incorporating a motor-driven fan or blower, and parts thereof, of iron or steel
This information seems to confirm that Canada Border Services Agency will be applying the 73.22 HS codes to gas furnaces imported from the United States (and potentially other types) to apply tariffs. Please consult your service provider on trade or border issues for more information.
HRAI continues to work with federal departments like Finance Canada and Canada Border Services Agency for the latest information, to offer guidance to our members on this fast-changing issue. If you have any comments or questions, send them to tariffs@hrai.ca.
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