07/13/2018

Canada Imposes Retaliatory Tariffs

The products impacted by the tariffs include steel, aluminum and jam

On July 1, 2018, Canadian countermeasures of $12.8 billion [$16.6 billion CAD] in tariffs on imports of steel, aluminum and other products from the United States went into effect. These retaliatory tariffs are a dollar-for-dollar response to U.S. tariffs imposed on Canadian steel and aluminum imports on June 1, 2018. Canada maintains that the U.S. tariffs imposed on Canada with a national security justification are unacceptable, according to the Consulate General of Canada in Detroit. In his press release to Ohio organizations, he noted that "there can be no doubt that Canada and the United States are integral partners in one another’s security."

The final list of U.S. exports subject to Canadian retaliatory tariffs includes $2.1 billion in Ohio exports. Tariffs were placed on a number of products including steel, aluminum, detergents, washing machines and strawberry jam.  The list of Ohio products impacted by Canadian countermeasures can be viewed here. These retaliatory tariffs will be lifted as soon as the United States removes its tariffs on Canadian steel and aluminum.

In addition, Canada has been engaging with partners across the border on the issue of Section 232 tariffs on automobiles and automotive parts. As Canada is the second largest source of light vehicle imports and the third largest source of automotive parts to the United States, any disruption to free trade between Canada and the United State would have a significant impact on the automotive sector in both countries.  Across Ohio, Michigan, Indiana and Kentucky, nearly 50 companies and associations that represent more than 500,000 American workers submitted written comment to the U.S. Secretary of Commerce opposing tariffs on automobiles and automotive parts. Testimony on the Section 232 investigation is scheduled for July 19-20.

"Whether in terms of our national security or our shared industrial base, we are stronger together," said Douglas George, the Consulate General of Canada in Detroit. "We trust that our American partners will recognize this interdependent relationship and respond appropriately by immediately and permanently lifting steel and aluminum tariffs on Canada and speak out against any further Section 232 tariffs. Please make your voice heard among members of U.S. Administration and Congress to exclude Canada from these tariffs."