Tax & Trade Blog

CAN-US TRADE WAR TAKES TO SKIES

US TO DECERTIFY / CDN PLANES IN TIT-FOR-TAT

On January 29, 2026, President Trump escalated a long-simmering aerospace dispute into a major trade confrontation when he posted that the United States (“US”) will decertify the Bombardier Global Express – and ALL aircraft made in Canada(!) – until Canada certifies four Gulfstream models: the G500, G600, G700, and G800 models. The President also threatened 50% tariffs on Canadian aircraft imported into the US. While the White House has clarified that any actions would only apply to future US purchases, that would severely impact Canada’s large, (US) export-dependent aerospace industry.

In this Air & Aerospace Report, we dig into the background of this dispute and what it may mean for the North American aerospace industry moving forward.

CITT FINDING: INDUSTRIAL STEEL WIRE

AD DUTIES ON STEEL WIRE FROM 10 COUNTRIES

On January 2, 2026, the Canadian International Trade Tribunal (the “CITT”) announced its Finding in Inquiry NQ-2025-003 (the “Finding”) reporting that the dumping of certain carbon or alloy steel wire originating in or exported from China, Taiwan, India, Italy, Malaysia, Portugal, Spain, Thailand, Türkiye and Vietnam, with some exclusions (the “Subject Goods”) had caused injury to the domestic industry.

Specifically, certain Subject Goods for commercial distribution or industrial manufacturing (“Industrial Wire”) had caused injury to the domestic industry, while those packaged for retail sale to individual consumers for domestic use (not exceeding a weight of 1 kg per retail ready package) had not and were not threatening to cause injury.

New Anti-Dumping Duties (“ADDs”) now apply to certain Industrial Wire imported into Canada and released after January 2, 2026.

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CITT FINDINGS: STEEL STRAPPING

ADDITIONAL DUTIES ON CHINA AND TÜRKIYE; NONE ON SOUTH KOREA OR VIETNAM

On January 14, 2026, the Canadian International Trade Tribunal (“CITT”) announced its Findings in Inquiry NQ-2025-005 (the “Findings”) reporting that the of dumping of certain steel strapping (the “Subject Goods”) originating in or exported from the People’s Republic of China (“China”) and the Republic of Türkiye (“Türkiye”) have caused injury to the domestic industry.  

New Anti-Dumping Duties (“ADDs”) now apply to certain Subject Goods imported into Canada and released after January 14, 2026.  See our previous report  for the CITT’s detailed description of the Subject Goods.

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CANADA'S THIRD-PARTY STEEL SURTAX

HIGH SURTAX RATES APPLY FOR STEEL IMPORTS ABOVE QUOTA LIMITS

As a follow up to our Steel Derivative Surtax Report here, over the recent Christmas holidays Canada also quietly amended the Surtax on the Importation of Certain Steel Goods (the “3P Steel Surtax”) and put in place a Remission Order for the same over the holiday period.

In this report, we report on the application of the 3P Steel Surtax, highlighting the tonnage tariff rate quota (“TRQ”) rules, import permit requirements, and relief available surtax exceptions and the Remission Order.

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SURTAX ON STEEL DERIVATIVE GOODS

BUSINESSES AND CONSUMERS TO FEEL FINANCIAL IMPACT OF NEW SURTAX

During the Christmas holiday season, the Federal Government of Canada quietly adjusted its trade policy QUITE significantly.  A significant development on this front is likely Canada’s enactment of the Steel Derivative Goods Surtax Order (the “Steel Derivative Surtax”) through an Order in Council.

We report below on the application of the Steel Derivative Surtax, and the particular goods targeted by these measures, and potential financial relief that may be available for businesses.