Some U.S. tariffs and retaliatory tariffs paused

The Trump White House is saying now that tariffs on “CUSMA-compliant” Canadian goods crossing the border will be paused until April 2.

“CUSMA-compliant” appears to refer to whether the importing company has filed paperwork confirming it is importing products under the Canada U.S. Mexico Agreement on free trade. Many companies prefer to import under the older most-favoured-nation rules, which allows them to import products for a small tariff while avoiding CUSMA red tape. News reports estimate as much as 62 percent of Canadian exports to the U.S. would continue to be subject to Trump’s 25 percent tariffs that are presently in place. However, Canadian officials are pointing out that it would be relatively simple matter for U.S. importers to file the needed paperwork, fall under the CUSMA rules and avoid the 25 percent tariffs.

Trump is quickly adding carveouts to his tariff program. This week, he announced tariffs on imports of Big Three vehicles from Canada would be paused until April 2. He added potash to the list of energy exports that would only be taxed at 10 percent.

Ottawa said that the $30-billion first wave of retaliatory tariffs would remain in place for as long as any U.S. tariffs are imposed or threatened. Provincial premiers have said their independent measures will remain in place, as well, including Ontario’s imposition of 25 percent export tariffs on electricity sold the the U.S.

That means retaliatory tariffs will apply to the following categories of construction goods:

• Floor coverings of plastics, whether or not self-adhesive, in rolls or in the form of tiles; wall or ceiling coverings of plastics;
• Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls;
• Baths, shower-baths, sinks and wash-basins;
• Lavatory seats and covers;
• Doors, windows and their frames and thresholds for doors;
• Pretty much all pre-cut wood products, including veneer, flooring, particle board, fibreboard, plywood, wood doors and windows, shutters, post and beams, shingles and shakes, flooring panels, glulam and engineered timber;
• Power, pneumatic, hydraulic and manual hand tools of just about all kinds;
• Fans: Table, floor, wall, window, ceiling or roof fans, with a self-contained electric motor of an output not exceeding 125W;
• Chandeliers and other electric ceiling or wall lighting fittings, excluding those of a kind used for lighting public open spaces or thoroughfares.

The second $125-billion wave of Canadian retaliatory tariffs planned for March 25 has been cancelled by Ottawa.

Separate 25-percent tariffs on Canadian steel and aluminum exports and countervailing Canadian tariffs on steel and aluminum imports, due to go into effect March 12, remain in place.