U.S. Expands Tariffs on Steel and Aluminum Content, Raising Concerns in Canada

TORONTO – TherS growing concern about a move by the United States to make hundreds more product categories subject to the country’s 50 per cent tariffs on steel and aluminum content.

The addition of 407 categories of products, ranging from bulldozers to furniture to wind turbines, came into effect earlier this week to add pressure and costs to those hoping to sell into the U.S. market.

“This action is another blow to the integrated economy our two countries have built over the last several decades,” Catherine Cobden,head of the Canadian Steel producers Association,said in a statement Thursday.

She said the industry is dismayed by the move, which will also affect products like cutlery, propane tanks, air conditioners and agricultural equipment like tractors.

The change is meaningful as many of the products hadn’t yet been hit with tariffs because they fall under the Canada-U.S.-Mexico free trade deal, said Dennis Darby, head of canadian Manufacturers and Exporters.

“These are things that, up until a week ago, were exempt under CUSMA,” said Darby.

“It’s regrettable,and it just puts more pressure on Canada.”

The U.S. Department of Commerce said Tuesday that adding to the range of products subject to metal tariffs shuts down avenues for circumvention and supports revitalizing U.S. steel and aluminum industries.

The release from the department came a day after the higher rates came into effect Monday, having only given notice they were coming Friday afternoon.

“that is not a normal amount of time,” said Joy Nott,a partner in trade and customs at KPMG in Canada.The fast turnaround means many companies are still working to catch up, she said.

“A lot of people are still digging through and I think trying to figure out exactly what it does mean?”

The product range, from consumer goods like hairspray and baby bassinets, to industrial goods like railcars