Trade Compliance

GHY discusses changes to international trade regulations and explores cutting-edge compliance strategies.

Steel & Aluminum Countermeasures: What Got Dropped? (Updated)

Posted June 29, 2018

When the Canadian government vowed to retaliate against the Trump administration’s “unjustified” steel and aluminum tariffs, it issued a list of proposed targets last month and invited stakeholders to comment on the planned response, particularly if the measures were expected to have an adverse financial effect.

Based on a comparison of the various products included in the government’s original Notice of Intent and the finalized List of Countermeasures announced today, it appears that the following items were ultimately dropped from the scope of retaliation and will therefore not be subject to any additional import surtax:

  • 2007.99.90 – Nut purées and nut pastes, berry purées, other fruit purées other than banana purée, other jams, jellies
  • 2103.30.20 – Prepared mustard
  • 72.19 – Flat-rolled products of stainless steel, of a width of 600 mm or more
  • 72.20 – Flat-rolled products of stainless steel, of a width of less than 600 mm
  • 7301.10 – Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements
  • 7302.40 – Railway or tramway track construction material of iron or steel: Fish-plates and sole plates
  • 7302.90 – Other railway or tramway track construction material of iron or steel
  • 7304.11 – Line pipe of a kind used for oil or gas pipelines: Of stainless steel
  • 7304.24 – Casing or tubing, of a kind used in drilling for oil or gas: Of stainless steel
  • 73.05 – Other tubes and pipes, having circular cross-sections, the external diameter exceeding 406.4 mm, of iron or steel
  • 73.06 – Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel
  • 76.07 – Aluminum foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm
  • 76.08 – Aluminum tubes and pipes
  • 76.09 – Aluminum tube or pipe fittings (for example, couplings, elbows, sleeves)
  • 85.37 – Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 85.35 or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and numerical control apparatus, other than switching apparatus of heading 85.17
  • 90.32 – Automatic regulating or controlling instruments and apparatus

The vast majority of products originally proposed by the government remained unaffected by the public consultation process, during which more than a 1,000 submissions were made, because most had been carefully selected for their strategic political value in taking aim at Trump supporting states and even specific congressional districts.

However, the fact that a number of goods did still manage to escape being hit with punitive tariffs as part of the government punching back “dollar-for-dollar” against the U.S., speaks to the importance of being proactive when it comes to championing your cause; whether that means approaching the government to seek relief of some kind, or as in this case, to avoid the imposition of duty measures that could seriously harm your business.

Being able to act quickly is key when disruptive issues like this arise means having immediate access to the data required to measure the potential impact of such changes on your supply chain. GHY’s trade solutions can help you accomplish the goal of being ready when you need to be. Additionally, our expert consultants can provide you with any support that may be needed to facilitate your company’s mitigation efforts.

Note: Updated to include a number of items that were initially omitted from the list of dropped products.