05 December 2024
Canada | Navigating Through Uncertainty of Potential New Tariffs on Canadian Products Imported into United States
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On 25 November 2024, United States (US) President-elect Donald Trump announced via social media his intention to impose a 25% tariff on all products imported from Canada and Mexico. **1** The President-elect also announced a plan to impose an additional 10% tariff on all imports of Chinese goods, which would apply in addition to tariffs currently in place.
The proposed 25% tariff on Canadian imports is a significant increase from the universal 10% tariff proposed by the President-elect during the US election campaign.**2** The President-elect has linked the threatened tariffs to Canadian and Mexican border security and immigration issues. It is unclear at this stage what policy conditions would need to be satisfied by Canada and Mexico with respect to these issues to prevent the imposition of the threatened tariffs.
**Importance of the Canada-US trade relationship**</p
What specific actions can Canadian businesses take to mitigate the negative impact of these potential tariffs on their operations?
## Navigating Tariff Uncertainty: Interview with Trade Expert
**Host:** Welcome back to the show. Today, we’re discussing the potential impact of new tariffs on Canadian businesses exporting to the United States. Joining us is Alex Reed, a trade expert with [Alex Reed Credentials]. Alex Reed, thanks for being here.
**Alex Reed:** Thank you for having me.
**Host:** Let’s dive right in. On November 25th, we saw President-elect Trump announce plans for significant new tariffs on imports from Canada and Mexico. What are the potential implications for Canadian businesses?
**Alex Reed:** It’s a very concerning development, to say the least. A 25% tariff on all Canadian goods would be a huge blow to many businesses, particularly in sectors like manufacturing, agriculture, and natural resources. It would likely lead to increased prices for consumers, reduced exports, and potential job losses.
**Host:** That sounds alarming. What can Canadian businesses do to prepare for this uncertainty?
**Alex Reed:** It’s important for businesses to stay informed about the latest developments and to start planning now. One crucial step is understanding the Harmonized System (HS) codes for their products.
**Host:** HS codes? What are those and why are they important?
**Alex Reed:** HS codes are a standardized system for classifying traded products [[1](https://international.canada.ca/en/global-affairs/services/trade/tariffs-regulations/harmonized-system-codes)]. By knowing their HS codes, businesses can determine the specific tariff rate that may apply to their goods if these new tariffs are implemented.
**Host:** That’s helpful information. Any other advice for our viewers?
**Alex Reed:** Reach out to trade organizations and government agencies like Global Affairs Canada’s Tariff and Goods Market Access Division for guidance and support. They can provide valuable resources and answer specific questions about navigating these complex trade issues. And don’t forget – staying informed and being proactive are key to weathering this storm.
**Host:** Great advice. Thank you so much, Alex Reed, for sharing your expertise with us today.
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