Latest news with #CUSMA-compliant
Hamilton Spectator
2 days ago
- Automotive
- Hamilton Spectator
Five things to know about Canada's counter-tariffs on the U.S.
OTTAWA - After U.S. President Donald Trump boosted steel and aluminum tariffs to 50 per cent, some industry groups and the Official Opposition have called on the federal government to retaliate in kind. Here's a look at the counter-tariffs Canada has imposed so far. 1. What do the counter-tariffs cover? The Canadian government has imposed retaliatory tariffs on U.S. goods three times since Trump's trade war began, aimed at what it says are imports worth $95.4 billion worth. On March 4 — after the U.S. imposed 25 per cent tariffs on all Canadian goods, along with 10 per cent on energy products — then-prime minister Justin Trudeau announced the first raft of counter-tariffs on $30 billion worth of U.S. goods. Those 25 per cent tariffs target things like orange juice, motorcycles, clothing and shoes, coffee, cosmetics and alcohol. On March 12, the U.S. added a 25 per cent tariff on all steel and aluminum products, which was stacked on top of existing levies on Canadian goods. Canada's response a day later was 25 per cent reciprocal tariffs on another $29.8 billion of U.S. goods, including steel and aluminum, tools, computers and sport equipment. On April 9, in response to another round of U.S. tariffs — this time targeting the Canadian auto industry — the federal government imposed 25 per cent duties on 'non-CUSMA compliant vehicles' from the U.S. and 25 per cent tariffs on the content of CUSMA-compliant vehicles from the U.S. The government says this covers $35.6 billion in auto imports from the United States. 2. What are the exemptions? On April 15, in the midst of the federal election campaign, Prime Minister Mark Carney announced that the government was exempting some products from tariffs for six months to help Canadian businesses adapt. The tariff holiday covers specific categories: goods used in Canadian manufacturing, processing and food and beverage packaging, as well as imports used to support public health, health care, public safety and national security objectives. And when it comes to vehicle tariffs, the government said 'companies that produce autos in Canada have been granted remission to ensure the ongoing viability of their Canadian operations,' but that it is 'contingent on them maintaining production levels in Canada and on following through with planned investments.' 3. Does this mean all counter-tariffs have been dropped? On Wednesday, Opposition House leader Andrew Scheer said the government 'secretly dropped those tariffs to zero during the campaign.' This line has been repeated often by the Conservatives since the release of a report by Oxford Economics on May 13, which said Canada paused counter-tariffs for six months 'on nearly all U.S. goods imports.' The report said it estimated the exemptions would cover about 97 per cent of the tariffs. The government said that's not true. A spokesperson for Industry Minister Mélanie Joly said the exemptions apply to 30 per cent of the $60 billion worth of goods that are subject to tariffs — a figure that doesn't include the auto tariffs. William Pellerin, a partner in international trade at McMillan LLP, said the exemption is not nearly as broad as what's been reported. 'I think that report caused a lot of consternation within the trading community and the legal community. It is absolutely, certainly not zero impact on our clients,' he said, noting many of them are paying millions of dollars in duties already. 4. Where does all this leave Canadian businesses? Pellerin said there's a lot of confusion out there about what's covered by the exemptions. The Canada Border Services Agency has issued a customs notice explaining how to interpret the exemptions, 'but in many circumstances it's simply not obvious at all,' Pellerin said. As an example, he said he has clients who have been told by the CBSA that imported agricultural equipment is not exempt. 'We actually think that that's legally incorrect, that they've poorly interpreted the order-in-council,' he said. That's the kind of thing his firm is trying to sort out while it waits and hopes for a long-term resolution. 'Whatever actions need to be taken to get back to a tariff-free world (are) absolutely necessary,' he said. 5. How much tariff revenue has the government collected and where is it going? Conservative MPs have been asking this question in the House of Commons all week. On Tuesday, Conservative MP Dan Albas charged that 'Liberals promised $20 billion in elbows-up U.S. tariffs, but later dropped them with no regard to affected Canadian workers or fiscal impacts.' Prime Minister Carney responded to say that tariffs are still in effect and $1.7 billion has been collected so far. The federal government's latest fiscal monitor showed Canada collected an extra $617 million in import duties in March, as compared to the year before. Figures for April and May have not yet been published. During the election campaign, the Liberals and the Conservatives both estimated Canada would collect $20 billion in tariff revenue this fiscal year. In its election platform, the Liberal party pledged that 'every dollar raised from these tariffs will support Canadian workers and businesses affected by the trade war.' Officials at the Finance Department said in a statement that the money is going into the consolidated revenue fund and being used 'to support those hardest hit by this economic disruption.' The statement said that is happening through programs like employment insurance work-sharing, deferral of corporate income tax payments and GST/HST remittances, or by offering liquidity support through Export Development Canada, Farm Credit Canada, Business Development Canada and the Large Enterprise Tariff Loan Facility. — With files from Craig Lord This report by The Canadian Press was first published June 5, 2025.
Toronto Star
3 days ago
- Business
- Toronto Star
Five things to know about Canada's counter-tariffs on the U.S.
OTTAWA - After U.S. President Donald Trump boosted steel and aluminum tariffs to 50 per cent, some industry groups and the Official Opposition have called on the federal government to retaliate in kind. Here's a look at the counter-tariffs Canada has imposed so far. 1. What do the counter-tariffs cover? The Canadian government has imposed retaliatory tariffs on U.S. goods three times since Trump's trade war began, aimed at what it says are imports worth $95.4 billion worth. On March 4 — after the U.S. imposed 25 per cent tariffs on all Canadian goods, along with 10 per cent on energy products — then-prime minister Justin Trudeau announced the first raft of counter-tariffs on $30 billion worth of U.S. goods. ARTICLE CONTINUES BELOW Those 25 per cent tariffs target things like orange juice, motorcycles, clothing and shoes, coffee, cosmetics and alcohol. On March 12, the U.S. added a 25 per cent tariff on all steel and aluminum products, which was stacked on top of existing levies on Canadian goods. Canada's response a day later was 25 per cent reciprocal tariffs on another $29.8 billion of U.S. goods, including steel and aluminum, tools, computers and sport equipment. On April 9, in response to another round of U.S. tariffs — this time targeting the Canadian auto industry — the federal government imposed 25 per cent duties on 'non-CUSMA compliant vehicles' from the U.S. and 25 per cent tariffs on the content of CUSMA-compliant vehicles from the U.S. The government says this covers $35.6 billion in auto imports from the United States. 2. What are the exemptions? On April 15, in the midst of the federal election campaign, Prime Minister Mark Carney announced that the government was exempting some products from tariffs for six months to help Canadian businesses adapt. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The tariff holiday covers specific categories: goods used in Canadian manufacturing, processing and food and beverage packaging, as well as imports used to support public health, health care, public safety and national security objectives. And when it comes to vehicle tariffs, the government said 'companies that produce autos in Canada have been granted remission to ensure the ongoing viability of their Canadian operations,' but that it is 'contingent on them maintaining production levels in Canada and on following through with planned investments.' 3. Does this mean all counter-tariffs have been dropped? On Wednesday, Opposition House leader Andrew Scheer said the government 'secretly dropped those tariffs to zero during the campaign.' This line has been repeated often by the Conservatives since the release of a report by Oxford Economics on May 13, which said Canada paused counter-tariffs for six months 'on nearly all U.S. goods imports.' The report said it estimated the exemptions would cover about 97 per cent of the tariffs. The government said that's not true. A spokesperson for Industry Minister Mélanie Joly said the exemptions apply to 30 per cent of the $60 billion worth of goods that are subject to tariffs — a figure that doesn't include the auto tariffs. William Pellerin, a partner in international trade at McMillan LLP, said the exemption is not nearly as broad as what's been reported. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'I think that report caused a lot of consternation within the trading community and the legal community. It is absolutely, certainly not zero impact on our clients,' he said, noting many of them are paying millions of dollars in duties already. 4. Where does all this leave Canadian businesses? Pellerin said there's a lot of confusion out there about what's covered by the exemptions. The Canada Border Services Agency has issued a customs notice explaining how to interpret the exemptions, 'but in many circumstances it's simply not obvious at all,' Pellerin said. As an example, he said he has clients who have been told by the CBSA that imported agricultural equipment is not exempt. 'We actually think that that's legally incorrect, that they've poorly interpreted the order-in-council,' he said. That's the kind of thing his firm is trying to sort out while it waits and hopes for a long-term resolution. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'Whatever actions need to be taken to get back to a tariff-free world (are) absolutely necessary,' he said. 5. How much tariff revenue has the government collected and where is it going? Conservative MPs have been asking this question in the House of Commons all week. On Tuesday, Conservative MP Dan Albas charged that 'Liberals promised $20 billion in elbows-up U.S. tariffs, but later dropped them with no regard to affected Canadian workers or fiscal impacts.' Prime Minister Carney responded to say that tariffs are still in effect and $1.7 billion has been collected so far. The federal government's latest fiscal monitor showed Canada collected an extra $617 million in import duties in March, as compared to the year before. Figures for April and May have not yet been published. During the election campaign, the Liberals and the Conservatives both estimated Canada would collect $20 billion in tariff revenue this fiscal year. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW In its election platform, the Liberal party pledged that 'every dollar raised from these tariffs will support Canadian workers and businesses affected by the trade war.' Officials at the Finance Department said in a statement that the money is going into the consolidated revenue fund and being used 'to support those hardest hit by this economic disruption.' The statement said that is happening through programs like employment insurance work-sharing, deferral of corporate income tax payments and GST/HST remittances, or by offering liquidity support through Export Development Canada, Farm Credit Canada, Business Development Canada and the Large Enterprise Tariff Loan Facility. — With files from Craig Lord This report by The Canadian Press was first published June 5, 2025.
Yahoo
3 days ago
- Automotive
- Yahoo
Five things to know about Canada's counter-tariffs on the U.S.
OTTAWA — After U.S. President Donald Trump boosted steel and aluminum tariffs to 50 per cent, some industry groups and the Official Opposition have called on the federal government to retaliate in kind. Here's a look at the counter-tariffs Canada has imposed so far. 1. What do the counter-tariffs cover? The Canadian government has imposed retaliatory tariffs on U.S. goods three times since Trump's trade war began, aimed at what it says are imports worth $95.4 billion worth. On March 4 — after the U.S. imposed 25 per cent tariffs on all Canadian goods, along with 10 per cent on energy products — then-prime minister Justin Trudeau announced the first raft of counter-tariffs on $30 billion worth of U.S. goods. Those 25 per cent tariffs target things like orange juice, motorcycles, clothing and shoes, coffee, cosmetics and alcohol. On March 12, the U.S. added a 25 per cent tariff on all steel and aluminum products, which was stacked on top of existing levies on Canadian goods. Canada's response a day later was 25 per cent reciprocal tariffs on another $29.8 billion of U.S. goods, including steel and aluminum, tools, computers and sport equipment. On April 9, in response to another round of U.S. tariffs — this time targeting the Canadian auto industry — the federal government imposed 25 per cent duties on "non-CUSMA compliant vehicles" from the U.S. and 25 per cent tariffs on the content of CUSMA-compliant vehicles from the U.S. The government says this covers $35.6 billion in auto imports from the United States. 2. What are the exemptions? On April 15, in the midst of the federal election campaign, Prime Minister Mark Carney announced that the government was exempting some products from tariffs for six months to help Canadian businesses adapt. The tariff holiday covers specific categories: goods used in Canadian manufacturing, processing and food and beverage packaging, as well as imports used to support public health, health care, public safety and national security objectives. And when it comes to vehicle tariffs, the government said "companies that produce autos in Canada have been granted remission to ensure the ongoing viability of their Canadian operations," but that it is "contingent on them maintaining production levels in Canada and on following through with planned investments." 3. Does this mean all counter-tariffs have been dropped? On Wednesday, Opposition House leader Andrew Scheer said the government "secretly dropped those tariffs to zero during the campaign." This line has been repeated often by the Conservatives since the release of a report by Oxford Economics on May 13, which said Canada paused counter-tariffs for six months "on nearly all U.S. goods imports." The report said it estimated the exemptions would cover about 97 per cent of the tariffs. The government said that's not true. A spokesperson for Industry Minister Mélanie Joly said the exemptions apply to 30 per cent of the $60 billion worth of goods that are subject to tariffs — a figure that doesn't include the auto tariffs. William Pellerin, a partner in international trade at McMillan LLP, said the exemption is not nearly as broad as what's been reported. "I think that report caused a lot of consternation within the trading community and the legal community. It is absolutely, certainly not zero impact on our clients," he said, noting many of them are paying millions of dollars in duties already. 4. Where does all this leave Canadian businesses? Pellerin said there's a lot of confusion out there about what's covered by the exemptions. The Canada Border Services Agency has issued a customs notice explaining how to interpret the exemptions, "but in many circumstances it's simply not obvious at all," Pellerin said. As an example, he said he has clients who have been told by the CBSA that imported agricultural equipment is not exempt. "We actually think that that's legally incorrect, that they've poorly interpreted the order-in-council," he said. That's the kind of thing his firm is trying to sort out while it waits and hopes for a long-term resolution. "Whatever actions need to be taken to get back to a tariff-free world (are) absolutely necessary," he said. 5. How much tariff revenue has the government collected and where is it going? Conservative MPs have been asking this question in the House of Commons all week. On Tuesday, Conservative MP Dan Albas charged that "Liberals promised $20 billion in elbows-up U.S. tariffs, but later dropped them with no regard to affected Canadian workers or fiscal impacts." Prime Minister Carney responded to say that tariffs are still in effect and $1.7 billion has been collected so far. The federal government's latest fiscal monitor showed Canada collected an extra $617 million in import duties in March, as compared to the year before. Figures for April and May have not yet been published. During the election campaign, the Liberals and the Conservatives both estimated Canada would collect $20 billion in tariff revenue this fiscal year. In its election platform, the Liberal party pledged that "every dollar raised from these tariffs will support Canadian workers and businesses affected by the trade war." Officials at the Finance Department said in a statement that the money is going into the consolidated revenue fund and being used "to support those hardest hit by this economic disruption." The statement said that is happening through programs like employment insurance work-sharing, deferral of corporate income tax payments and GST/HST remittances, or by offering liquidity support through Export Development Canada, Farm Credit Canada, Business Development Canada and the Large Enterprise Tariff Loan Facility. — With files from Craig Lord This report by The Canadian Press was first published June 5, 2025. Sarah Ritchie, The Canadian Press
Winnipeg Free Press
3 days ago
- Automotive
- Winnipeg Free Press
Five things to know about Canada's counter-tariffs on the U.S.
OTTAWA – After U.S. President Donald Trump boosted steel and aluminum tariffs to 50 per cent, some industry groups and the Official Opposition have called on the federal government to retaliate in kind. Here's a look at the counter-tariffs Canada has imposed so far. 1. What do the counter-tariffs cover? The Canadian government has imposed retaliatory tariffs on U.S. goods three times since Trump's trade war began, aimed at what it says are imports worth $95.4 billion worth. On March 4 — after the U.S. imposed 25 per cent tariffs on all Canadian goods, along with 10 per cent on energy products — then-prime minister Justin Trudeau announced the first raft of counter-tariffs on $30 billion worth of U.S. goods. Those 25 per cent tariffs target things like orange juice, motorcycles, clothing and shoes, coffee, cosmetics and alcohol. On March 12, the U.S. added a 25 per cent tariff on all steel and aluminum products, which was stacked on top of existing levies on Canadian goods. Canada's response a day later was 25 per cent reciprocal tariffs on another $29.8 billion of U.S. goods, including steel and aluminum, tools, computers and sport equipment. On April 9, in response to another round of U.S. tariffs — this time targeting the Canadian auto industry — the federal government imposed 25 per cent duties on 'non-CUSMA compliant vehicles' from the U.S. and 25 per cent tariffs on the content of CUSMA-compliant vehicles from the U.S. The government says this covers $35.6 billion in auto imports from the United States. 2. What are the exemptions? On April 15, in the midst of the federal election campaign, Prime Minister Mark Carney announced that the government was exempting some products from tariffs for six months to help Canadian businesses adapt. The tariff holiday covers specific categories: goods used in Canadian manufacturing, processing and food and beverage packaging, as well as imports used to support public health, health care, public safety and national security objectives. And when it comes to vehicle tariffs, the government said 'companies that produce autos in Canada have been granted remission to ensure the ongoing viability of their Canadian operations,' but that it is 'contingent on them maintaining production levels in Canada and on following through with planned investments.' 3. Does this mean all counter-tariffs have been dropped? On Wednesday, Opposition House leader Andrew Scheer said the government 'secretly dropped those tariffs to zero during the campaign.' This line has been repeated often by the Conservatives since the release of a report by Oxford Economics on May 13, which said Canada paused counter-tariffs for six months 'on nearly all U.S. goods imports.' The report said it estimated the exemptions would cover about 97 per cent of the tariffs. The government said that's not true. A spokesperson for Industry Minister Mélanie Joly said the exemptions apply to 30 per cent of the $60 billion worth of goods that are subject to tariffs — a figure that doesn't include the auto tariffs. William Pellerin, a partner in international trade at McMillan LLP, said the exemption is not nearly as broad as what's been reported. 'I think that report caused a lot of consternation within the trading community and the legal community. It is absolutely, certainly not zero impact on our clients,' he said, noting many of them are paying millions of dollars in duties already. 4. Where does all this leave Canadian businesses? Pellerin said there's a lot of confusion out there about what's covered by the exemptions. The Canada Border Services Agency has issued a customs notice explaining how to interpret the exemptions, 'but in many circumstances it's simply not obvious at all,' Pellerin said. As an example, he said he has clients who have been told by the CBSA that imported agricultural equipment is not exempt. 'We actually think that that's legally incorrect, that they've poorly interpreted the order-in-council,' he said. That's the kind of thing his firm is trying to sort out while it waits and hopes for a long-term resolution. 'Whatever actions need to be taken to get back to a tariff-free world (are) absolutely necessary,' he said. 5. How much tariff revenue has the government collected and where is it going? Conservative MPs have been asking this question in the House of Commons all week. On Tuesday, Conservative MP Dan Albas charged that 'Liberals promised $20 billion in elbows-up U.S. tariffs, but later dropped them with no regard to affected Canadian workers or fiscal impacts.' Prime Minister Carney responded to say that tariffs are still in effect and $1.7 billion has been collected so far. The federal government's latest fiscal monitor showed Canada collected an extra $617 million in import duties in March, as compared to the year before. Figures for April and May have not yet been published. During the election campaign, the Liberals and the Conservatives both estimated Canada would collect $20 billion in tariff revenue this fiscal year. Monday Mornings The latest local business news and a lookahead to the coming week. In its election platform, the Liberal party pledged that 'every dollar raised from these tariffs will support Canadian workers and businesses affected by the trade war.' Officials at the Finance Department said in a statement that the money is going into the consolidated revenue fund and being used 'to support those hardest hit by this economic disruption.' The statement said that is happening through programs like employment insurance work-sharing, deferral of corporate income tax payments and GST/HST remittances, or by offering liquidity support through Export Development Canada, Farm Credit Canada, Business Development Canada and the Large Enterprise Tariff Loan Facility. — With files from Craig Lord This report by The Canadian Press was first published June 5, 2025.
Time of India
11-05-2025
- Automotive
- Time of India
Trump's UK deal tests Canada's trade future
US President Donald Trump on Thursday (May 8) unveiled a preliminary trade agreement with the United Kingdom framed as a historic breakthrough. #Operation Sindoor India responds to Pak's ceasefire violation; All that happened India-Pakistan ceasefire reactions: Who said what Punjab's hopes for normalcy dimmed by fresh violations Trump told reporters in the Oval Office , 'The final details are being written up,' as he praised the deal for boosting American ethanol and beef exports while retaining a baseline 10 per cent tariff on most UK imports. British officials confirmed that steel and aluminum duties would be lifted, while tariffs on automobiles would drop to 10 per cent for up to 100,000 vehicles annually. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Direct Shopping From Adidas Francchise Store, 60% Discount Original Adidas Shop Now Undo The deal gave nations all across the world, including Canada , insight related to the objectives of his campaign to use tariffs to disrupt international trade. Trump began his global trade war with "reciprocal" tariffs in April, but a few hours later, he withdrew the most damaging ones. Trump maintained his 10 per cent global tariff while claiming that the 90-day break would allow nations to negotiate a deal. 'This was very serious. It would have meant people would have lost their jobs without this breakthrough,' said UK Business Secretary Jonathan Reynolds. Live Events US Agriculture Secretary Brooke Rollins called the agreement 'hugely important,' citing $5 billion in new American export opportunities. For Canadian officials watching closely, the deal offers both a model and a warning. Canada was hit with sweeping tariffs in March, including those on automobiles, steel, and aluminum, with Trump citing the opioid crisis and fentanyl flows from the north as justification. Some of these were rolled back for CUSMA-compliant goods, but key sectors remain vulnerable. Through this deal, the implications for Canada's tightly integrated auto industry are stark. 'Under this deal, it will now be cheaper to import a UK vehicle with very little US content than a CUSMA-compliant vehicle from Mexico or Canada that is half American parts,' said Matt Blunt, president of the American Automotive Policy Council. In Ottawa, Prime Minister Mark Carney's recent Oval Office visit with Trump marked a potential turning point. Trump called CUSMA 'still very effective' and praised Carney as 'very talented.' The two leaders appeared cordial, a stark shift from Trump's past jabs at former PM Justin Trudeau. Carney, elected on a platform centered on economic stability and rebuilding investor confidence, made trade a priority after a campaign in which the economy was the defining issue. His visit to Washington was widely seen as an effort to smooth tensions and signal a more cooperative approach. But seeing Trump's track record, Canada should expect hard bargaining. 'It shows that the Trump administration is amenable to negotiation,' said Carleton University's Fen Osler Hampson. 'The reality is, we are entering an era of managed trade.' The UK trade agreement suggests some kind of US tariff on Canadian goods could remain in place, even if trade talks between Ottawa and Washington largely succeed, Hampson said, 'If CUSMA stays in place, not only can we live with Trump's tariffs, if they are lower we may actually benefit vis-a-vis other countries who sell in the US market.' The UK deal also showed how political style may matter. Christopher Sands, director of the Center for Canadian Studies at Johns Hopkins University, said British Prime Minister Keir Starmer's 'persistence and friendly professionalism' proved effective with Trump. While Trump appears open to deals, his motivations remain transactional. 'He doesn't believe in trade deficits,' said Henry Olsen, a senior official at the Public Policy Center. Olsen also noted that although Trump exaggerates the US trade deficit with Canada, largely due to energy imports, he will expect any future agreement to reduce it. 'That will be extremely difficult for Prime Minister Carney to do.'
