Scope Change in Custom Duties Applied by the US on Canadian Products

The US administration decided to change the scope of the 50 percent additional custom duties applied to certain products originating from Canada. According to the information note published by the White House, certain machinery, paper, and refrigeration equipment are excluded from the scope of the tariffs, while specific valves, carpets, and waste products will be included in the scope.

Regulations regarding the import of certain products from Canada were made with five proclamations signed by US President Donald Trump. With the changes made under Section 338 of the Tariff Act of 1930, plywood sheets, certain paper products, specific machinery and refrigeration equipment, as well as certain packaging crates and boxes, were excluded from the scope of the additional custom duty, while specific valves, carpets, and waste products will be subject to a 50 percent additional duty.

In July, the US administration had imposed a 50 percent additional custom duty on certain products imported from this country, alleging that Canada engaged in discriminatory practices against American trade. In September, proclamations banning the import of certain motorcycles, dairy products, and alcoholic beverages were signed. On the other hand, a food importer in the US filed a lawsuit on the grounds that the 50 percent additional custom duties applied to Canada are unlawful. The latest changes announced by the White House will enter into force as of October 30.