The United States recently announced that it will impose a 25% tariff on "all articles that are products of Canada", except for imports of energy resources which will be subject to a 10% tariff. In response, the Canadian federal government announced new 25% tariffs on various U.S. goods, the first phase of which is also scheduled to come into effect on February 4, 2025. Businesses across Canada will be significantly affected by these tariffs, which apply in addition to any other current import-related tariffs, fees and charges. These tariffs are expected to have broad consequences for the Canadian economy, including on businesses, supply chains, workers and the price of goods.
As these tariffs are expected to have an immediate impact, Canadian exporters and importers only have a short time to assess how their supply chains and operations may be affected. Canadian businesses should also determine whether they may be eligible for Canadian tariff relief under the Canada's Department of Finance's remission program. Given the immediate challenges presented by these new tariffs, it's important to contact your KPMG adviser to help you consider the effects of this change, including understanding the new remission rules and submission process.
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