Tariffs and all-out Trade War Concerns Escalate
Last week, the Government of Canada launched an initial round of retaliatory tariffs – on $30 billion of imports – as a response to the across-the-board tariffs proposed on close to $600 billion of Canadian products by the U.S. Administration. While the U.S. subsequently postponed tariffs on “CUSMA-compliant trade” (about 40% of the total) to April 2, the president then proceeded anyway with tariffs on Canadian steel and aluminum, which prompted a response from Canada on March 12th. For a timeline on these back and forth measures, click HERE.
Immediately following that announcement, Canada declared that a second round that will come later, covering another $125 billion in goods. While the initial $30 billion list largely excluded the products of the HVACR sector (with a few exceptions), the new list of proposed products does include some HVAC products. There is a 21-day consultation period that will allow industry to comment on this list.
On March 12th. HRAI hosted a virtual meeting of manufacturers on to discuss the latest developments and to advise on an approach. HRAI advised members on the process for making submissions directly to Finance Canada on which products should be included in the Canadian response. HRAI will be hosting another webinar on March 25th that will include a representative from Finance Canada to advise more specifically on the consultation process. Stay tuned for a notice for that meeting.
HRAI will keep members apprised on the consultation process and on any new messaging about actual or planned future actions on either side of the border.
Important Information Links:
Initial list of Products subject to Canadian Tariffs: https://www.canada.ca/en/department-finance/news/2025/03/list-of-products-from-the-united-states-subject-to-25-per-cent-tariffs-effective-march-4-2025.html
Proposed List of Tariffs for Second Round: https://www.canada.ca/en/department-finance/programs/consultations/2025/notice-intent-impose-countermeasures-response-united-states-tariffs-on-canadian-goods.html
Information on the process for requesting remissions (relief) from tariffs: https://www.canada.ca/en/department-finance/programs/international-trade-finance-policy/process-requesting-remission-tariffs-that-apply-on-certain-goods-us.html
For help in looking up the relevant HTS codes that apply to industry products, see: https://www.tariffinder.ca/en/.
Link to March 12th webinar recording: https://hrai-ca.zoom.us/rec/share/gcHMgwO4H16sF2N1oJMhZD8kSNlZa3Ez5OudMhBu6cDAIdeDyZaLTvD2XNnnn0wB.XKgQ-g9jM7DwiuXe?startTime=1741794385000
For a timeline of the tariffs threats and actions over the past six weeks, see: https://globalnews.ca/news/11076387/donald-trump-tariffs-canada-timeline/
For more information, contact Martin Luymes at 1-800-267-2231 ext. 235, or email mluymes@hrai.ca.
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