Report on Supply Chain Compliance 3, no. 16 (August 20, 2020)
United States President Donald Trump announced[1] Aug. 6 that he would be imposing a 10% tariff on aluminum imports, citing national security concerns and a depressed U.S. domestic aluminum industry. Canadian Deputy Prime Minister Chrystia Freeland responded[2] with a list of possible targets for retaliatory tariffs.
In response to [U.S. imposed tariffs] and in accordance with the May 2019 Joint Statement by Canada and the United States on Section 232 Duties on Steel and Aluminum, Canada intends to impose surtaxes against imports of aluminum and aluminum-containing products from the U.S., representing a proportionate amount of Canadian aluminum products affected by the U.S. tariffs.
The two countries are party to the U.S.-Mexico-Canada Agreement, the trade pact that replaced the North American Free Trade Agreement. Prior to the signing of the U.S.-Mexico-Canada Agreement, both Canada and the U.S. had imposed tariffs on each other[3] . Those tariffs were removed following the implementation of the agreement last month.
U.S. tariffs on Canadian aluminum took effect Aug. 16, 2020, while Canadian tariffs will be in place by Sept. 16, 2020.