Tax & Trade Blog

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CANADA'S BANDAID APPROACH TO TARIFFS

EXTENSION OF REMISSION SHOULD BE REPLACED BY REMOVAL OF ALL TARIFFS

While Prime Minister Carney was recently quoted saying there will be no tariffs imposed on US imports, Canada’s remaining tariffs (technically “surtaxes”) on US steel and aluminum and some automotive goods continue to be source of significant economy pain for the remaining industrial businesses left in Canada’s economy.

Even with the recent announcement from the Department of Finance Canada (“DOF”) that remission relief from the tariffs will be extended an additional two months and enhanced, the best course of action in the circumstances would be to tear the “bandaid” right off and eliminate ALL retaliatory tariffs in one fell-swoop.

On October 18, 2024, the Department of Finance launched its remission process to allow Canadian businesses to apply for relief or refund from surtaxes levied at Chinese products in an effort to level the playing field for Canadian businesses and workers.  Eligible Canadian businesses can apply to the Minister of Finance and present their plea on how the surtax policies have unduly burdened their business operations.

Businesses that request remission prior to November 8, 2024, will receive priority in application processing, while subsequent submissions will be processed thereafter in the usual course.