The federal government has announced retaliatory tariffs on imports from the U.S. of many steel and aluminum products, including “doors, windows and their frames and thresholds for doors.” The tariffs are in response to American tarrifs announced in May on steel and aluminum entering the U.S. from Canada. The tariff on fenestration products will be 10 per cent.
Here’s the announcement from the Canadian Department of Finance:
On May 31, 2018, the United States (U.S.) announced tariffs on imports of certain steel and aluminum products from Canada at the rates of 25% and 10%, respectively. Taking into consideration feedback received from Canadians through over 1,000 submissions during public consultations, on July 1, 2018, Canada will impose countermeasures (surtaxes) against C$16.6 billion in imports of steel, aluminum, and other products from the U.S., representing the value of 2017 Canadian exports affected by the U.S. tariffs. The list of products in Tables 1, 2 and 3 below were drawn from original lists released for public consultation on May 31, 2018. Goods from Table 1 will be subject to a 25 per cent surtax. Goods from Tables 2 and 3 will be subject to a 10 per cent surtax. These countermeasures will 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 Purposes of Marking Goods (NAFTA Countries) Regulations. These countermeasures will take effect on July 1, 2018 and will remain in place until the U.S. eliminates trade-restrictive measures against Canadian steel and aluminum products. The countermeasures will not apply to U.S. goods that are in transit to Canada on the day on which these countermeasures come into force.
“Doors, windows and their frames and thresholds for doors” appears on Table 2 of the tariff listings.
The U.S. Window and Door Manufacturers Association has criticized the tariffs:
On Friday, WDMA informed its members that the Canadian government had imposed a 10 percent tariff on U.S. aluminum windows, doors and doorframes. The new tariffs take effect today. According to the Canadian government, these new tariffs are in response to the tariffs on imports of certain steel and aluminum products from Canada imposed by the Trump Administration announced in early June.
“WDMA was critical of the imposition of U.S tariffs on steel and aluminum and this new action by Canada further escalates trade tensions between the two nations,” said WDMA CEO Michael O’Brien. “These actions will only lead to additional price increases in the residential and commercial building markets in both countries, hinder progress in the renegotiation of NAFTA and resolving the softwood lumber dispute.”
At this time, additional guidance is not available from the Canadian government regarding how this tariff will be imposed. WDMA has been working diligently to seek additional clarification from the Canadian Government and will provide additional guidance for WDMA members when it becomes available.
David Langton, president of the Canadian Glass Association, said, “At this time, without much to go on, we are being advised by our suppliers that there will be a seven to 10 per cent price increase on aluminum. None of us are sure where this will go, except we know that the consumer will be the ‘payer’ in the end.”
For more information
Trade own-goal: Glass Canada August 2018
Editorial: U.S. aluminum tariffs an economic own-goal
Department of Finance
wdma.com
CITY TV coverage
CBC coverage
Canada’s building trades unions stand with the government on U.S. tariffs
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