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April 18, 2018
Planned U.S. duties on Chinese goods could affect Canadian exporters
On March 22, U.S. President Donald Trump announced that he intends to take action against China because an investigation revealed that the policies and practices of the Government of China related to technology transfer, intellectual property, and innovation are unreasonable or discriminatory and burden or restrict U.S. commerce.
The U.S. action will take the form of a 25% duty on $50 billion in Chinese imports. The proposed product list of goods subject to the tariffs includes aerospace, information and communication technology, and machinery.
The Office of of the United States Trade Representative is in the process of consultations with U.S. industry on the list of goods and is studying requests for exemption.
All goods from China that appear on the final list will be affected by the extra duty, should it come into effect.
The new tariff would likely apply to Chinese goods that have been customs cleared or bonded-warehoused in Canada and are subsequently exported to the U.S.
The list of goods currently under investigation can be found, listed by tariff classification, in a notice published in the U.S. Federal Register.
A few days after the American announcement the Government of China, in a notice of retaliation, issued a list of U.S. goods that would be subject to additional duty when imported into China, should the U.S. duty come into effect. President Trump then threatened to add another $100 billion of Chinese goods to his list. The two countries have also opened cases on the issue at the World Trade Organization, and are talking, if erratically, through several channels. The final outcome is hard to predict.
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