by Bracewell LLC

Despite assurance over the past several months that a successful renegotiation of NAFTA would lead to the end of Section 232 steel and aluminum tariffs on Canada and Mexico, termination of the tariffs was not part of the new US Mexico Canada Agreement (USMCA) and there is no indication that negotiations are leading to the end of the tariffs in the near future.  Canada announced yesterday that it was imposing its own safeguard measures on seven types of steel products.  A 25% tariff rate quote on seven types of steel products(heavy plate, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel, stainless steel wire, and wire rod) will be imposed starting October 25.

The Order applies to certain steel goods  imported from all countries except for the exclusions listed below:

• The Order does not apply to goods originating in and imported from the U.S., Chile, and Israel or another CIFTA beneficiary.
• For goods originating in and imported from Mexico, this Order only applies to energy tubular products and wire rod.
• Additionally, the Order does not apply to goods originating in and imported from developing countries which are beneficiaries to the General Preferential Tariff (GPT) with one exception: concrete reinforcing bar originating in and imported from Vietnam are not exempt.

Canadian Customs Details here.