Canada Looking at Further Retaliatory Tariffs on US
Canada may pursue an increase in its retaliatory tariffs on U.S. goods as part of an effort to convince President Donald Trump to end the U.S. tariffs on steel and aluminum from Canada, the Canadian Broadcasting Corporation said in a March 29 report. Mexico too is said to be considering an expansion to its retaliatory tariffs (see 1903140025). Additional tariffs on the U.S. are hoped to push Trump toward lifting the metals tariffs as part of U.S.-Mexico-Canada free trade deal, the CBC reported.
Citing a "source with direct knowledge," the CBC said Canada would like to increase the values on goods from the U.S. to match the dollar amounts involved in the tariffs on Canadian steel and aluminum. The original Canadian retaliation was initially described as matching the U.S. tariffs, but the CBC's report said that isn't really true any more due to exclusions. Canada's retaliatory tariffs have been in effect since July 1, 2018 (see 1807020041).
The current list of goods subject to the retaliatory tariff comprises three parts. Table 1 covers steel products subject to a 25 percent tariff, and includes tariff provisions that fall in the following headings (some subheadings within these headings may not be subject to tariffs):
- Chapter 72: 7206, 7207, 7208, 7209, 7210, 7211, 7212, 7213, 7214, 7215, 7216, 7217, 7218, 7221, 7222, 7223, 7224, 7225, 7226, 7227, 7228, 7229
- Chapter 73: 7304, 7305, 7306.
Table 2 includes aluminum products subject to a 10 percent tariff, and includes tariff provisions that fall in the following headings (some subheadings within these headings may not be subject to tariffs):
- Chapter 76: 7604, 7606, 7610, 7611, 7612, 7613, 7615, 7616.
Table 3 includes other products upon which Canada is imposing retaliatory tariffs, also at a rate of 10 percent, that fall within the following headings (some subheadings within these headings may not be subject to tariffs):
- Chapter 4: 0403
- Chapter 9: 0901
- Chapter 16: 1602
- Chapter 17: 1702, 1704
- Chapter 18: 1806
- Chapter 19: 1905
- Chapter 20: 2001, 2007, 2009
- Chapter 21: 2103, 2104
- Chapter 22: 2202, 2208
- Chapter 33: 3304, 3305, 3307
- Chapter 34: 3401, 3402, 3406
- Chapter 35: 3506
- Chapter 38: 3808
- Chapter 39: 3923, 3924
- Chapter 44: 4412
- Chapter 48: 4802, 4811, 4818, 4822
- Chapter 49: 4909
- Chapter 73: 7321
- Chapter 84: 8418, 8419, 8422, 8433, 8450
- Chapter 89: 8903
- Chapter 94: 9401, 9404
- Chapter 95: 9504
- Chapter 96: 9608.