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Want to listen to the tip? Use the play button below. Click here for our 15-page simplified list of the specific products subject to Canada’s March 4 and 13 counter-tariffs. For other ways to navigate the trade war with confidence, get the free complete Trade-War Success Guide for Small to Mid-Size Companies below. If you are a prairie CEO who wants to grow a thriving company more quickly, more easily and with less stress and headache, please contact me here. For more detailed legal explanations of the US tariffs and Canada’s response, see this JDSupra article by Toronto law firm Stikeman Elliott LLP.
https://www.jdsupra.com/legalnews/back-and-forth-levies-in-the-north-4837119/ 1. As of June 3, it is now clear that US tariffs on steel and aluminum products are all encompassing applying also to CUSMA-compliant products. The Stikeman Elliott LLP article indicates the U.S. government’s June 3 proclamation made clear CUSMA-compliant steel and aluminum products are no longer exempt from the 50% tariffs. 2. This article by the law firm Blakes speaks to the specifics of the U.S. tariffs on copper products, the elimination of the U.S. de minimis treatment for low-value shipments, and the introduction of the 40% tariff on non-CUSMA-compliant products that are transshipped via another country. https://www.blakes.com/insights/us-canada-tariffs-timeline-of-key-dates-and-documents/ 3. The Canadian Federation of Independent Business appears to confirm the 25% tariffs on the non-US content in Canadian CUSMA-compliant automobiles will continue. https://www.cfib-fcei.ca/en/site/us-tariffs 4. The Bank of Canada’s July 30 Monetary Policy Report includes estimates of the percentage of Canadian products overall, and energy exports, that are CUSMA-compliant. https://www.bankofcanada.ca/wp-content/uploads/2025/07/mpr-2025-07-30.pdf 5. There is no mention in the U.S. president’s executive order whether the 35% tariff on non-CUSMA compliant products will apply to automobiles. https://www.whitehouse.gov/presidential-actions/2025/07/amendment-to-duties-to-address-the-flow-of-illicit-drugs-across-our-northern-border-9350/ However, we’ve had an AI check all websites for more information, and those websites referenced currently assume Canadian non-CUSMA-compliant automobiles and automobile parts will also be subject to the 35% tariff and make no mention of a different rate. For example, the Canadian Federation of Independent Business website makes this assumption: https://www.cfib-fcei.ca/en/site/us-tariffs 6. An April 25, 2025 RBC article estimates the bulk of Canadian potash exports to the U.S. are CUSMA-compliant. https://www.rbc.com/en/thought-leadership/economics/featured-insights/cusma-compliance-rush-will-it-shield-canada-from-u-s-tariffs/ 7. The full CUSMA agreement can be found here: https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/agreement-between It includes a Rules of Origin document, which can be found here: https://ustr.gov/sites/default/files/files/agreements/FTA/CUSMA/Text/04%20Rules%20of%20Origin.pdf 8. The government of Canada’s announcement about the 6-month relief from Canadian counter-tariffs for certain sections and the remissions available for auto, steel and aluminum companies can be found here: https://www.canada.ca/en/department-finance/news/2025/04/canada-announces-new-support-for-canadian-businesses-affected-by-us-tariffs.html Comments are closed.
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