Tax & Trade Blog

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TRUMP'S NEW TARIFFS - NOT HURTING CANADA?

TRUMP TARIFFS DO NOT APPLY TO CUSMA GOODS

Much of the current commentary surrounding the new US tariff measures has overlooked a central point – namely, that broad-based US tariff actions do NOT apply to Canadian-origin goods that properly qualify under CUSMA.

There are certainly some exceptions like in militarily strategic sectors (like steel and aluminum) and in sensitive economic sectors (like automotives and lumber) but the wider narrative suggesting sweeping tariff exposure for Canadian exports to the US is probably overstated. We provide additional insight below.

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BATTLE WON BUT TRADE WAR NOT OVER?

US SUPREME COURT RULES INITIAL ROUND OF IEEPA TARIFFS UNLAWFUL

In a major development of the Canada-US Trade War (the “Trade War”), the Supreme Court of the United States (“SCOTUS”) in its decision of Learning Resources, Inc. et al. v. Trump, No. 24–1287 (“Learning Resources”), ruled that President Trump’s initial round of tariffs under the International Emergency Economic Powers Act (“IEEPA”) targeting Canada, Mexico and China are unlawful.

In this report, we provide a brief review of SCOTUS’ decision in Learning Resources, along with some implications for the Trade War moving forward, including President Trump’s potential response.

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AUTOMOTIVE REPORT: TARIFF CHAPTER 87

CBSA'S VERIFICATION AUDITS TARGET VEHICLE TIRES

For many in the automotive industry, there is a temptation to import foreign-made goods (i.e., non-USMCA-qualifying) for use in production processes or as parts and sub-components for vehicles and automotive systems. They are often less costly.

At the same time, many of these imports attract significantly higher duty rates, which can create pressures to classify them under potentially alternative tariff headings with lower rates of duty.

Our recent file experience has demonstrated that this is often a short-lived strategy, as the CBSA’s verification procedures will eventually put these classification decisions to the ultimate test.

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CBSA INVESTIGATING OCTG FROM AUSTRIA!

DUMPING OF CERTAIN OIL & GAS WELL CASING FROM AUSTRIA

On February 2, 2026, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of certain oil and gas well casing from Austria. This investigation was prompted by a joint complaint filed by a manufacturer in Alberta.

The goods under investigation are more specifically described as:

Oil and gas well casing and green tube casing, made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 4 ½” inches to 9 5/8” inches (114.3 mm to 245.2 mm), meeting or supplied to meet American Petroleum Institute (API) specification 5CT or equivalent and/or enhanced proprietary standards, in all grades, originating in or exported from the Republic of Austria.

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EXPIRY REVIEW: CHINESE SOLAR PANELS

CITT TO REVIEW ANTI-DUMPING DUTIES ON CHINESE PHOTOVOLTAIC MODULES/LAMINATES

On February 2, 2026, the Canadian International Trade Tribunal (“CITT”) announced that it is starting its expiry review (“Review”) on the dumping and subsidizing of photovoltaic modules and laminates (i.e., solar panels) from China. The CITT will use its Review to determine whether existing trade protections – in place since 2015 – will continue for another five years or be allowed to expire.

Below, we explain what this Review is, how it will work, and why those in the Canadian solar industry may wish to get involved.