The US recently imposed tariffs on imports of steel and aluminum products from trade partners around the globe, as well as goods imported from China. In retaliation, trade partners have hit back with counter tariffs on US exports.

Canada’s Response

Beginning July 1^st, Canada is set to impose tariffs on $12.8 billion worth of US goods, an amount equating to the value of steel and aluminum products imported into the US from Canada. US exports to Canada falling under Chapters 72 (i.e., 7206-7229) and 73 (i.e., 7301-7302, 7304-7306) will be subject to 25 percent duty. Whereas, goods found in the following chapters will be subject to 10 percent duty:

• Chapter 4 (i.e., 0403)
• Chapter 9 (i.e., 0901)
• Chapter 16-22 (i.e., 1602, 1702, 1704, 1806, 1905, 2001, 2007, 2009, 2103-2104, 2202, 2208)
• Chapter 33-35 (i.e., 3304-3305, 3307, 3401-3402, 3406, 3506)
• Chapter 38-39 (i.e., 3808,3923-3924)
• Chapter 44 (i.e., 4412)
• Chapter 48-49 (i.e., 4802, 4811, 4818, 4822, 4909)
• Chapter 73 (i.e., 7310, 7321)
• Chapter 76 (i.e., 7605-7616)
• Chapter 84-85 (i.e., 8418-8419, 8422, 8433, 8450, 8537)
• Chapter 89-90 (i.e., 8903, 9032)
• Chapter 94-96 (i.e., 9401, 9404, 9504, 9608)

A more comprehensive list of the goods subject to these duties is available on the Government of Canada’s website.

Chinese Retaliation

In April, China implemented tariffs on 128 products from the US in response to Section 232 tariffs. Duties of 15 percent were applicable to products falling under Chapter 2 (i.e., 0203, 0206) and Chapter 76 (i.e., 7602). Duties of 25 percent were imposed on products included in Chapter 8 (i.e., 0801-0813), Chapter 12 (i.e., 1211), Chapter 22 (i.e., 2204, 2207), and Chapter 73 (i.e., 7304). The tariffs do not apply to all subheadings within these chapters.

European Union’s (EU) Retort

Effective June 20^th, the EU will impose tariffs on $7.2 billion worth of US goods. Subject to 25 percent tariffs and covering 181 items, the products fall under the following chapters (the tariffs do not apply to all subheadings within these chapters):

• Chapter 7 (i.e., 0710-0711, 0713)
• Chapter 10 (i.e., 1005-1006)
• Chapter 19 (i.e., 1904)
• Chapter 20 (i.e., 2001, 2004-2005, 2008-2009)
• Chapter 22 (i.e., 2208)
• Chapter 24 (i.e., 2402-2403)
• Chapter 33 (i.e., 3304)
• Chapter 61-64 (i.e., 6109, 6203-6204, 6302, 6405)
• Chapter 72-73 (i.e., 7210, 7219, 7222-7223, 7226, 7228-7229, 7301, 7304, 7306-7311, 7314-7315, 7318, 7321-7326)
• Chapter 76 (i.e., 7606)
• Chapter 87 (i.e., 8711)
• Chapter 89 (i.e., 8903)
• Chapter 95 (i.e., 9504)

Mexico, India, Japan, Russia, and Turkey plan to initiate retaliatory tariffs as well. Deringer will continue to provide guidance regarding tariff changes.