Tariffs Updates and Trade Resources
The United States is proposing a tariff of 25% on Canadian goods and 10% on Canadian oil and gas imported into the US. This was initially planned for February 4th, 2025 but has been delayed until March 4, 2025, at 12:01 a.m. eastern time.
As a border community, the Langley Chamber knows the importance and value of the Canada-U.S. trade relationship -- one of the most fair, successful, and deeply integrated in the world. These destructive and counter-productive tariffs imposed by the US jeopardize this relationship, hurting businesses on both sides that have spent decades working together successfully through predictable trade policies, and punishing consumers and workers in both countries.
This page holds key information for Langley businesses to understand and navigate the tariffs and their economic impact. For questions or comments on the trade dispute, or to share resources for this page, please feel free to contact us at info@langleychamber.com
The US Tariffs
The United States imposes tariffs of 25% on Canadian goods and 10% on Canadian oil and gas imports. The new tariffs will apply in addition to any other duties, fees, exactions, and charges applicable to the imports. The proposed tariffs initially scheduled for February 4, 2025 have been paused until March 4, 2025, at 12:01 a.m. eastern time.
A list of products or product codes has not been released yet. The President's order states that the tariffs apply to "all articles," implying all goods imported for use or consumption. At no time has the President talked about services. The 10% tariff is on “energy or energy resources” which was defined in a previous Executive Order as "crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals."
On Feb 10, the US government signed an executive order instituting a 25% reciprocal tariff on foreign steel and aluminum. The implementation date for these new tariffs is slated for March 12th, 2025.
Canada's Tariffs
In response, Canada will impose tariffs of 25% on $30 billion in goods imported from the U.S, if and when the U.S tariffs are applied. The list includes products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. The detailed list of the products impacted is here.
An additional $125 billion worth of US imports will be tariffed at 25% at a later date. The full list of these goods will be made available for a 21-day public comment period prior to implementation, and will include products such as passenger vehicles and trucks, including electric vehicles, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, dairy, trucks and buses, recreational vehicles, and recreational boats.
The US has said it will allow no exemptions and will not have a “drawback” policy in place for its tariffs on Canadian imports. The Executive Order does provide an exception for some goods that are already in transit, stating imports that were loaded onto their final mode of transit before entering the United States prior to 12:01 a.m. on February 1, 2025 are exempt.
The Canadian government will consider requests for exemption from the tariffs on US imports (known as “remission requests”) for specific circumstances where inputs cannot be sourced domestically or from non-US sources, or where severe adverse impacts to the broader economy may occur. Send your request to fin.remissions-remises.fin@canada.ca, including "U.S. Remission" in the subject line and follow the template laid out on this page.
Duty drawbacks may be available in Canada for eligible imports. The program grants a drawback (refund) of duties that were paid on imported goods when the imported goods are later exported as-is, or when goods are used to produce other goods for export. More info >
The Langley Chamber will work with strategic partners to deliver and share educational and information events about the tariffs. See upcoming sessions below:
Excellence in Manufacturing Consortium - Navigating Your Cross Border Strategy
Thursday, February 27, 2025, 10:30pm PST
Join this industry event featuring Canada-U.S. trade insider Dan Ujczo, Senior Counsel in Thompson Hine LLP’s International Trade and Transportation law practice groups, as he provides crucial insights into navigating U.S. trade, contracts, and market entry strategies. Register >
A number of expert articles and resources are available for review and reading. A curated list of some such resources follow:
- Pacific Customers Brokers - Extensive resource library including videos and FAQs
- BDO - A 30-day resilience blueprint for Canadian enterprises
- BDC: Resources for businesses impacted by potential U.S. tariffs
- BDC The impact of potential tariffs: How to get your business ready
- CENTRAL 1: Trade war games: U.S. tariff s, Canada responds
- EDC: FAQs: What Canadian exporters need to know about the impact of potential U.S. tariffs
- EY: Navigating through the uncertainty of potential new tariffs on imports of Canadian products into the United States
- GOWLINGS WLG: Preparing for tariffs: A short guide for Canadian companies
- KPMG: KPMG in Canada supports Canadian businesses navigating U.S. tariffs
- MCMILLAN: Preparing for Potential US Tariffs: Key Dates and Strategic Considerations
- MCMILLAN: The Pause on the Tariff War: How Businesses Can Use the Reprieve Wisely
Canada-US Trade Tracker: a new tool from the Canadian Chamber of Commerce designed to illustrate the ties between our two economies and gives you data to tell your American contacts, clients and customers why this trade war will hurt both sides
Canada Tariff Finder: Quickly get tariff information for specific products and countries where Canada has a Free Trade Agreement
List of Initial US Goods To Be Tariffed by Canada: The initial list of US goods that will be tariffed when imported to Canada if implemented.
Full List of US Goods to be Tariffed: This will be updated when released.
Pacific Customs Brokers has extensive resources on tariffs, how they work, and more. Visit PCBglobaltrade.com/tariffs >
Businesses should use the time before tariffs are implements to understand their supply chain and markets, and how they would be impacted by either export tariffs by the US or Canadian retaliatory input tariffs.
Strategies some exporters may wish to explore include pre-loading exports into the United States before March 4 to build up tariff-free inventory in the US for fulfillment after March 4 if the tariffs materialize, or considering developing a US subsidiary to transfer product to at a lower, transfer price before marking-up and retailing into the US from there. Some exporters to the US may also wish to explore diversifying their markets and developing trading options outside of the US altogether using the resources below.
Importers of US goods should take this month reprieve to understand the country or origin of their inputs, and consider diversifying their supply chain to non-US suppliers, whether from other international markets or from Canadian suppliers. The Langley Business Directory is a searchable database of 1150 Langley businesses which can help you shop for supplies and inputs locally. Langley Business Directory >
More readings:
Export Navigator - Export Navigator is a free government-funded program that helps your B.C.-based business by matching you with a dedicated Export Advisor for one-on-one guidance and support.
Trade Commissioner Service - Offers tailored export advisory services, funding, qualified business contacts, accelerator programs and support at trade events
Export from Canada - The federal government's landing page for exporting
Export Development Canada - Advice, financing, and trade credit insurance
Canadian Commercial Corporation - Supports businesses to pursue sales to foreign governments at all levels and provides a government-to-government contracting mechanism that de-risks the transaction for both you and your buyer
Business Benefits Finder: Get a tailored list of government programs and services for your business
Farm Credit Canada provides resources and financing to farms/ag businesses, as well as food and beverage production and manufacturing businesses.
Business Development Bank of Canada (BDC) offers financing, advisory solutions and capital to small- and medium-sized business in all industries and at all stages of growth.
Innovation, Science and Economic Development Canada (ISED) helps you find and take advantage of the government services you need to expand or scale up your business in Canada and around the world.
The Langley Chamber urges all in our community to focus on supporting local with your purchases during this time.
1,150 Langley businesses are Chamber members and are included in the Langley Business Directory. This directory is organized by sector, searchable for keywords, and contains information and contact information for businesses.
The Langley Chamber has several members in the logistics sector offering transportation, freight services, and customs brokerage services to help you navigate this time. These businesses can help you ensure the customs declaration is correct and duties and taxes paid, as well as physically getting your products to market.
Find them below or ask for a connection!
Find businesses in the Transportation/Logistics/Freight sector >