Tariff Talk

It’s a new dawn, it’s a new day, and we’re all feeling tired of new tariffs. I watch it day to day with clients and colleagues, on LinkedIn, and in the evening news, which no longer covers every tariff headline. For today, it’s the retaliation by Canada against tariffs imposed by the U.S. Later this month, it will likely be additional Section 232s and new Section 301s. If the headlines contain an international tiff, a possible tariff will be threatened. Those working directly with tariffs will lament, adjust, and get back to the business of the day.

But, back to Canada. The Government of Canada announced, “As a result of the United States’ (U.S.) decision to impose a 50 per cent tariff on $27.6 billion of Canadian goods effective August 22, the Government of Canada will match the U.S. Section 338 tariffs – dollar for dollar.”

Starting today, tariffs of 15%, 25%, and 50% are now in place on that $27.6 billion of U.S. goods, inclusive of steel, dairy, appliances, agricultural equipment, paper and paper products, golf clubs, and electronics. The Trump administration is threatening additional tariffs and a ban on the sale of Bombardier jets in the U.S., which pushed company executives to publicly remind the administration of the tens of thousands of American jobs created because of Bombardier.

Around the third week of September, we will likely hear about overcapacity Section 301 tariffs (adding 7.5% for China). New Section 232s are in place for drones, further impacts for pharmaceuticals are expected in late September, and we are all ears for any potential impact on metal derivatives.