{"id":1807,"date":"2025-02-18T16:16:42","date_gmt":"2025-02-18T16:16:42","guid":{"rendered":"https:\/\/yormicklaw.com\/?p=1807"},"modified":"2025-02-18T20:12:59","modified_gmt":"2025-02-18T20:12:59","slug":"tariffs-affecting-canada-us-trade-navigating-the-uncertainty","status":"publish","type":"post","link":"https:\/\/yormicklaw.com\/es\/tariffs-affecting-canada-us-trade-navigating-the-uncertainty\/","title":{"rendered":"Tariffs Affecting Canada-US Trade: Navigating the Uncertainty"},"content":{"rendered":"\t\t
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International Business & Trade<\/a><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Tariffs Affecting Canada-US Trade: Navigating the Uncertainty<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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febrero 18, 2025 \u00b7 <\/span> 5<\/span> minutes<\/span><\/span><\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Background<\/strong><\/h3>\n

On 1 February 2025, President Trump signed Executive Order (\u201cEO\u201d) 14193, entitled Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border,<\/em> declaring a national emergency under the International Emergency Economic Powers Act (\u201cIEEPA\u201d).\u00a0The tariffs were initially scheduled to take effect at midnight on 4 February.\u00a0Canada promptly responded and on 2 February 2025, published Customs Notice 25-03: United States Surtax Order (2025)<\/em>, imposing tariffs on US goods \u201cin response to the U.S.\u2019 imposition of tariffs on goods imported into the U.S. from Canada.\u201d\u00a0The Surtax Order<\/em><\/strong><\/a> was also scheduled to be implemented on 4 February 2025.\u00a0After reported negotiations, a 30-day suspension\u2014until 6 March 2025\u2014was agreed upon between the countries.<\/p>\n

\u00a0<\/p>\n

As a result, EO 14197, entitled Progress on the Situation at Our Northern Border<\/em>, was issued on 3 February 2025, with the President stating in EO 14197 that \u201cI have determined that the Government of Canada has taken immediate steps designed to alleviate the illegal migration and illicit drug crisis through cooperative actions.\u00a0Further time is needed, however, to assess whether these steps constitute sufficient action to alleviate the crisis and resolve the unusual and extraordinary threat beyond our northern border.\u201d\u00a0With much less fanfare, Canada published Customs Notice 25-04: Repeal of the United States Surtax Order (2025)<\/em>, to repeal the Surtax Order<\/em>.\u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

The near implementation of tariffs on Canadian products by the US and Canada\u2019s planned countermeasures are now \u201cpaused,\u201d providing companies with an opportunity to plan based on valuable insights taken from the EOs and the United States Surtax Order<\/em>.\u00a0Significantly, before EO 14197 was issued, an advance copy of the text to be published in the US Federal Register<\/em> was posted on the Federal Register<\/em>\u2019s website, but was then removed because the notice was not published, as scheduled.\u00a0The United States Surtax Order<\/em> remains available on the Canada Border Services Agency (\u201cCBSA\u201d) website.\u00a0Importantly, interested companies and their advisors now understand how the US might impose these tariffs early next month or later and how Canada will respond of the tariffs are imposed in an otherwise uncertain business environment.<\/p>\n

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US Tariff Action that Might be Implemented<\/strong>
Scope and Coverage of the Tariffs<\/em><\/h3>\n

Under EO 14193, a 25% ad valorem<\/em> duty will be assessed on all Canadian products, with a reduced duty rate of 10% specifically for Canadian energy products, including oil, gas, and electricity.\u00a0The primary question that arose was the definition of \u201cproducts of Canada.\u201d\u00a0The US government clarified this in a Federal Register<\/em> notice, which was later retracted, stating that the duties apply to all products of Canada, including:<\/p>\n