On May 31, 2018, when the United States announced the expiration of the exemption of the Section 232 steel and aluminum duties on Canada (along with Mexico and the EU), Canadian importers must have been waiting for the other shoe to drop, wondering if they would see the kind of retaliatory tariffs threatened by other countries. They didn’t have long to wait.

The very same day, the Canadian Department of Finance announced the Canadian government’s intention to impose countermeasures in the way of surtaxes or possibly other trade-restrictive actions in an amount up to CA$16.6 billion in imported goods from the U.S. The goods cover steel and aluminum, but also a very-carefully selected list of other products across 27 chapters in the harmonized tariff schedule, which trade experts have hypothesized were chosen to apply political pressure in the U.S. while impacting Canada as minimally as possible.

The proposed tariff numbers of the impacted products and the rates of the surtaxes, which will be assessed over and above any other main rate or other duty rate, can be found here

The rates are either 25% or 10% (like the U.S. rates on steel and aluminum) and will go into effect on July 1, 2018. There are 375 fully-qualified HS numbers proposed to be assessed the 25% surtax and 295 tariff numbers proposed at 10%. They will stay in effect until the U.S. eliminates its increased duties. Canada is allowing Canadian companies or industry associations to submit written comments regarding the proposed list of tariff numbers. Comments must be submitted no later than June 15, 2018.