Tax & Trade Blog

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SAFEGUARD INQUIRY: CERTAIN WOOD GOODS

CITT TO DETERMINE WHETHER IMPORTS THREATEN CANADIAN PRODUCERS

On April 21, 2026, the Canadian International Trade Tribunal (“CITT”) issued a Notice of Commencement of Safeguard Inquiry (the “Notice”) under the Canadian International Trade Tribunal Act in respect of imports of certain wood goods (“Subject Goods”). The matter was referred to the CITT by the Government of Canada through an Order in Council on April 20, 2026, which was prompted by a formal request from the Canadian Wood Products Alliance.

Contextual Background

It is worth noting that one potential catalyst for the CITT’s safeguard inquiry into the Subject Goods is the fact that United States (“US”) has placed 25% tariffs on similar wooden products (i.e., upholstered wooden furniture, kitchen cabinets and vanities, etc.) since October 14, 2025, through a Presidential Proclamation. It is possible, if not likely, that many of these products destined for the US market have been diverted to the Canadian market to avoid the US tariffs.

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SAFEGUARD INQUIRY: CANNED/FROZEN VEGGIES

 CITT TO DETERMINE WHETHER IMPORTS THREATEN CANADIAN PRODUCERS

On March 16, 2026, the Canadian International Trade Tribunal (“CITT”) issued a Notice of Commencement of Safeguard Inquiry under the Canadian International Trade Tribunal Act in respect of imports of certain canned and frozen vegetables (“Subject Goods”). The matter was referred to the CITT by the Government of Canada through an Order in Council on March 13, 2026, which was prompted by a formal request from the Canadian Association of Vegetable Growers and Processors.

The Subject Goods

The goods under investigation are more specifically described as:

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CBSA TARGETTING CHEESE DOG TREATS

IMPORTERS OF DOG TREATS COULD FACE MASSIVE DUTY ADJUSTMENTS

The Canada Border Services Agency (“CBSA”) has listed verifying tariff classifications of cheese treats for dogs (“Cheese Treats”) as one of its compliance priorities for 2026. While it may sound niche, CBSA has identified Cheese Treats as a potential threat to Canada’s supply-managed dairy system, which is one of Canada’s most consequential – and sometimes controversial – trade barriers.

In this Customs & Trade Report, we explain what is behind this strange new CBSA effort, and why impacted importers could face significant financial risk.

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CBSA LOSES CHALLENGE ON NHP IMPORTS!

CBSA ARGUED CHANGE IN EXPLANATORY NOTES REQUIRED EVIDENCE OF EFFICACY

The recent decision of the Canadian International Trade Tribunal (the “CITT”) in Atrium Innovations Inc. (AP-2021-032 and AP-2022-026) is good news for importers of licensed Natural Health Products (“NHPs”). 

In its decision the CITT upheld 25 years of precedent and rejected arguments by the Canada Border Services Agency (the “CBSA”) that December 2019 changes to the WCO Explanatory Notes now require evidence of efficacy before classifying an NHP as a “medicament” for tariff purposes.

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TARIFF RELIEF 101

CANADA'S REMISSION PROCESS MAY LESSEN BURDEN FOR BUSINESSES

Despite the fact that President Trump agreed to a further moratorium on his Trump Tariffs on Canadian goods until April 2, 2025, Canada’s initial round of Retaliatory Tariffs STILL remains in effect! (?)

Businesses affected by Canada’s Retaliatory Tariffs are likely seeking relief from their financial effects and the Canadian government has outlined a remission process that may provide such relief. 

Understanding what a remission order is and how one can request remission from Canadian imposed tariffs may provide businesses with a financial lifeline in the current climate of a turbulent trade war.

The trade relationship between the United States (“US”) and Canada is facing renewed tensions as President Trump has reaffirmed that the US will impose a blanket 25 percent tariff on all Canadian goods, and is aiming to do this as soon as February 1, 2025.

In response, Canadian government officials have signaled Canada will respond with retaliatory tariffs and other possible countermeasures such as export taxes.  Consequently, it is important to understand how retaliatory import tariffs and export taxes have worked in the past, and how they might work in the future.

On June 24, 2024, the Canadian government announced the launch of a 30-day consultation period starting July 2, 2024, to explore potential policy responses aimed at protecting Canada’s auto workers and its growing electric vehicle (“EV”) industry against unfair trade practices from China.

Background

Canada’s automotive sector currently produces over 1.5 million vehicles annually, equivalent to one vehicle every 21 seconds.  This sector supports nearly 550,000 indirect jobs, contributed $18 billion to Canada’s GDP in 2023, and ranks among the nation’s largest industries.