Tariff Update Hub

EFC Updates

• Canadian Chamber of Commerce Update to Partners - March 12, 2025

  1) U.S. tariff updates

  Tariff exemptions for CUSMA compliant Canadian imports into the U.S. until April 2. 

  • President Trump announced on March 3 that the tariffs he threatened under the International Emergency Economic Powers Act (IEEPA), namely, 25% across-the-board tariffs & the 10% energy tariff, would enter into force on March 4 at 12:01 a.m. However, on March 6, President Trump signed an Executive Order that temporarily suspended these tariffs on Canadian goods that claim and qualify for CUSMA preference until April 2 (see the related Fact Sheet for more information). Notably, any tariffs that were collected from March 4-6 will not be refunded.
  • According to a White House official that briefed reporters, only 38% of imports from Canada used CUSMA preferences last year whereas 50% of imports by Mexico did. These figures reflect the fact that the Most Favoured Nation (MFN) tariffs via the WTO were 0% or relatively low at the time and there was therefore often not a need for Canadian exporters to utilize tariff preference under CUSMA to ship to the U.S. It is expected that there will now be a shift towards using the CUSMA preference to avoid the tariffs. Economists have come up with different numbers for how many goods the tariff suspension could affect. According to calculations by the Peterson Institute for International Economics, about 85% percent of U.S. merchandise imports from Canada and Mexico may be eligible for preferential tariffs under CUSMA.
  • Finance Canada is interpreting ‘CUSMA-compliant’ trade based on whether companies claim CUSMA preferential treatment when exporting goods to the U.S. (i.e. by completing the necessary trade documentation for CUSMA tariff rates) and whether they meet the CUSMA rules of origin provisions. Additionally, according to Finance Canada, transitioning from Most Favored Nation (MFN) status to CUSMA preference may not be overly burdensome for many companies, as they may already be complying with CUSMA’s rules of origin requirements.

  Other tariff exemptions and adjustments.

  • In addition to the exemption for CUSMA compliant Canadian imports, the following temporary exemptions and adjustments to the IEEPA tariffs against Canada are now in place:
    • There is a lower 10% tariff on any potash imported from Canada and Mexico that falls outside the CUSMA preference.
    • On March 5, the White House announced that a 30 day tariff exemption would be granted for vehicles made in compliance with USMCA “so they are not at an economic disadvantage.” 
    • On March 2, an Executive Order was issued that creates a temporary exception for goods eligible for duty-free de minimis treatment from Canada (e.g. shipments valued at less than $800). Per the Executive Order, this exemption will cease to be available once adequate systems have been put in place to collect tariff revenues.

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  Steel and aluminum tariffs (25%) take effect on March 12. 

  • On February 10, President Trump “restored” Section 232 tariffs on steel and aluminum that the U.S. had imposed in 2018, raising the aluminum tariff rate to 25% to match the steel tariff rate. According to the President, the tariffs will go into effect on March 12. On March 11, President Trump made post on Truth Social indicating that the tariffs against Canadian steel and aluminum would double to 50% in response to Ontario’s surcharge on electricity supplied to neighbouring states. The tariffs were then imposed at the original rate of 25% after a day of escalating threats.
  • The U.S. Federal register notices for tariffs on steel and aluminum have been published. These include extended lists of targeted derivative products. Notably, the scope products covered is substantially larger than the scope of products covered in the steel and aluminum tariffs from 2018. Even if your exports were not impacted by U.S. tariffs in 2018, it is important to verify whether your businesses might be impacted by the latest tariffs by checking the tariff codes in the federal register notices. Many downstream products likely will be impacted (e.g. auto parts, furniture, gym equipment, etc.)

  2) Canada’s retaliatory tariffs and other responsive measures

  The federal government’s initial retaliatory measures to proceed. 

  • On March 4, the Canadian federal government confirmed that it is moving forward as expected with its plan for 25% tariffs on $155 billion worth of imported goods, beginning immediately with a list of goods worth $30 billion. The $30 billion list of tariffed goods is unchanged from the list that was announced on February 1 and will proceed as planned. The scope of the Canadian counter tariffs will be increased to $155 billion if the current U.S. tariffs are maintained. The larger list includes products such as electric vehicles, fruits and vegetables, beef, pork, dairy, electronics, steel, aluminum, trucks, and buses. Notably, Canada’s tariffs only apply to goods originating from the U.S., which shall be considered as those goods eligible to be marked as a good of the U.S. in accordance with the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations. The government has also announced a remission framework to help importers who may need to seek transitional relief from tariffs. Additionally, the government is also considering non-tariff measures, potentially relating to North American security and energy security. 

  List of products from the United States subject to 25 per cent tariffs.

  • Effective March 13, 2025, the Government of Canada is imposing 25% tariffs on $29.8 billion in products imported from the United States. These countermeasures are effective as of 12:01 a.m., March 13, 2025, and will remain in place until the U.S. eliminates its tariffs against Canadian steel and aluminum products. Canada’s countermeasures do not apply to U.S. goods that are in transit to Canada on the day on which they come into force.
  • New federal supports for impacted businesses. On March 7, the federal government announced a new $6 billion support package to help businesses navigate U.S. tariff related disruptions. Notably these measures include temporarily relaxing rules around a program that allows employees to receive partial EI benefits while working reduced hours, updated Investment Canada Act Guidelines, and measures to ensure businesses have liquidity (e.g. Trade Impact Program through EDC, loans via BDC, and financing via Farm Credit Canada for Canadian ag and food industry).
  • Provincial non-tariff retaliatory measures. All provincial governments have announced non-tariff counter measures in response to the U.S. tariffs. Such measures include taking U.S. liquor off store shelves, restricting U.S.-based companies from taking part in government procurement, financial assistance for impacted businesses, and also implementing a 25% surcharge on electricity supplied to neighbouring states in the case of Ontario. You can view each individual province’s non-tariff measures below.
    • Alberta: Alberta pushes back on illegal U.S. tariffs | alberta.ca
    • Ontario: Ontario rips up Starlink deal, plans to tax electricity in response to Trump trade war | CBC News
    • Quebec: U.S. Tariffs – Priority: Protecting Our Economy Government of Quebec
    • British Columbia: B.C.’s response to unjustified U.S. tariffs – Province of British Columbia
    • Nova Scotia: Statement on U.S. Tariffs | Government of Nova Scotia News Releases
    • New Brunswick: Government shares provincial tariff action plan
    • Manitoba: Tax deferrals coming, other measures to follow as Manitoba fights back against U.S. ‘economic attack’: Kinew | CBC News
    • Saskatchewan: Saskatchewan To Halt Us Alcohol And Procurement | News and Media | Government of Saskatchewan
    • Prince Edward Island: tariff_response_plan.pdf
    • Newfoundland and Labrador: Statement from the Premier in Response to U.S. Tariffs – News Releases

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• Tariff Update from EFC - March 7, 2025

  

  EFC Tariff Update

  In February, EFC’s Government Relations Committee and EFC’s Board of Directors met to develop a position for EFC in response to tariffs imposed on Canada by the United States government. Board members agreed that maintaining free trade or securing an exemption for Canadian and American electrical products, would be the favourable outcome for all EFC members, ensuring the continued prosperity of our thriving industry. 

  However, if Canada is unable to secure an exemption for electrical products, EFC board members came to an agreement that Canada should adopt a fair-trade approach to protect Canadian businesses and jobs by applying retaliatory tariffs. Matching tariffs product by product will level the playing field for companies exporting to the US from Canada and whose products now have a 25% tariff applied.

  EFC submitted our industry position to Finance Canada on Friday February 28th along with an initial list of electrical and automation HS codes. View letter. There is a consultation period with the department of finance to comment on the second round of codes to be implemented with retaliatory tariffs. EFC staff will be reaching out to confirm the HS codes relevant to EFC members. We aim to confirm any missing codes and identify those codes that have no alternative supply in Canada. We will submit our revised lists before the consultation deadline on March 25th. 

  Read More

• Tariff Survey Results: Understanding Potential Impact - February 28, 2025

  

  EFC Tariff Survey Confirms Significant Impact

  In response to the proposed tariffs on Canadian goods, EFC conducted a survey to better understand and quantify the potential impact. The proposed tariffs have raised concerns across various industries, including Canada’s electrical and automation sector. 

   

  With 85 member organizations represented (approximately 33% of membership), the results revealed tariffs on Canadian goods would have a significant impact on costs, supply chains and overall business operations.  65% of respondents anticipate that tariffs would have significant to very severe impacts to their businesses. Expected consequences to the tariffs include price increases and supplier and market re-alignment. When asked if members were supportive of retaliatory tariffs? The answer was 60% in favour of retaliation.

   

  Read more | Click here to view the full survey results

   
• Update on Proposed Tariffs on Steel and Aluminum - February 21, 2025

  Update on Proposed Tariffs on Steel and Aluminum

  As shared by NEMA with their members, here is an update on the US government’s plans for steel and aluminum imports. The Presidential Proclamations, adjusting Section 232 tariffs on steel and aluminum, were signed on February 10, 2025.  A White House Fact Sheet is also available to view. If the U.S. government proceeds with these plans, the tariffs are scheduled to take effect on March 12, 2025.  Currently, there is no indication that there will be a product-specific exclusion process or country exemptions. On Tuesday, the Federal Register published an annex with impacted HS codes.

   

  View the Federal Register proclamation

   

  Click to read the full update
• Tariff Response: Advocating for Free Trade - February 7, 2025

  

  Tariff Response: Advocating for Free Trade

  The start of February was a challenge as the country awaited confirmation of President Trump’s tariff plan for North America. With those plans essentially paused for one month, Canada faces a reprieve albeit with lingering uncertainty and confusion. As an organization, EFC remains committed to understanding and representing our members and doing our part to mitigate the potential for negative impact on businesses, supply chains, and overall industry competitiveness.

  Here are a couple of immediate actions by EFC implemented to understand, communicate, and advocate for the needs and perspectives of our membership:  

  1. An official statement from Carol McGlogan, EFC’s President & CEO, in response to the tariff situation is now available. Read the statement

  2. EFC has launched a member survey to better understand and quantify the impact of the tariff plan (as announced for February 1). The official representative for each member company received the survey link and there has been a strong response at launch. Member insights are critical in shaping our response and advocacy efforts and we strongly encourage all companies to participate (via their official representative) and share how these tariffs would affect your operations. 

  We will continue to monitor the situation and provide updates as we engage with policymakers and industry leaders. If you have any immediate concerns or require further information, please reach out to our team. 

• Impact of US Tariffs on EFC Membership | Member Survey Coming Soon - January 24, 2025

  Impact of US Tariffs on EFC Membership | Member Survey Coming Soon

  The effects of U.S. tariffs on EFC membership are yet to be determined. To represent the collective voice of our membership, EFC is preparing a tariff impact survey to be launched immediately after the finalized tariff plans are announced, scheduled for implementation on February 1. Once the survey is live, we encourage all members to participate as the results will be shared with our membership and government. In the meantime, EFC has issued a joint statement with CANAME and NEMA on the importance of a free trade zone to ensure the uninterrupted supply of electrical goods in North America (statement). Last year, EFC also submitted recommendations to the Federal Government on behalf of our membership regarding specific China tariffs related to wire and cable products and transformers (submission). EFC will continue to advocate for our members and new information will be shared as it becomes available.

• Statement on Behalf of Trio of North American Electrical Industry Associations - December 13, 2024

  

  Statement on Behalf of Trio of North American Electrical Industry Associations 

  In recognition of the shared commitment to promoting trade across our regions, EFC, CANAME, and NEMA have issued a joint statement emphasizing the importance of free trade in electrical industry goods among Canada, Mexico, and the United States. The statement has been distributed to media in our respective countries, and in Canada specifically, reporters at BNN Bloomberg, The Canadian Press, CBC News, CTV News, Global News, The Globe & Mail, The National Post and The Logic received a copy of the statement in English and French.  The statement was also shared with government officials in Natural Resources Canada (NRCan), Environment and Climate Change Canada (ECCC), Innovation, Science and Economic Development Canada (ISED), Global Affairs Canada (GAC), Transport Canada (TC), Standards Council of Canada (SCC), and the Department of Finance Canada/Departmental Project Management Office.  

  View the joint statement on our website and LinkedIn.

  EFC also had the opportunity to meet with the International Trade Policy Branch of the Department of Finance on Monday. During the discussion with the Director of Trade and Tariff Policy, Mike Mosier, EFC emphasized two key messages: 1. reinforcing the request for Tariff extensions on wire & cable and transformers; and 2. expressing the importance of maintaining an open and free trade zone between Canada, the United States and Mexico, as our manufacturing network is highly integrated in North America. 

  EFC is committed to representing and advocating for our members and shall continue to amplify our collective voices where it matters most. Thank you to our members for their ongoing support and participation in developing the messaging needed to drive positive change.