$300m in import taxes to boost Canadian business
Canada’s retaliatory tariffs on U.S. imports has seen almost $300 million in surtaxes being collected.
In fact, figures from the Canada Border Services Agency reveal that surtaxes adding up to over $286.5 million were acquired throughout July and August. Taxes were charged on imports of steel, aluminiumand a mix of other products from America.
Now, Canadian finance are hoping to help our businesses blossom with these additional finances, by funnelling the money into industries throughout the country. "We are committed to making sure that every dollar raised in reciprocal tariffs is given back in the form of support for affected sectors," said Pierre-Olivier Herbert, acting as spokesperson for Finance Minister Bill Morneau.
The taxes were decided upon as a retaliatory measure against U.S. President Trump, who imposed taxes on Canada after using a trade law that stated importanted “threaten to impair the national security”. A 25% duty on steel and a 10% levy on aluminum was added to imports from North of the border. In a bid to fight back, Canada put their own “dollar-for-dollar” duties in place as of July 1.
However, experts say it is consumers on both sides of the border who will suffer the most from the additional expenses.
"Importers will be paying more, whether it be 25% or the 10%. Importers will pass that cost on to the next person in the supply chain and eventually it will be the consumers that pay the increased cost," she said.
Meanwhile, U.S. Customs and Border Protection revealed that although it collected over $1.8 billion on steel imports and $535.3 million on aluminium imports from global suppliers, it has no definitive figures for Canadian imports. But as discussions rage on surrounding NAFTA, experts say the tariffs could be lifted if there is a deal settled as part of the three-country agreement.
"Coming to an agreement on NAFTA is a very good step towards getting rid of the tariffs, but it won't be overnight. I don't think you can expect Canada to have a NAFTA deal and tomorrow the tariffs are gone,” Trade lawyer Brenda Swick told CBC.
"The tariffs are going to be here for a while."