No Canada–U.S. agreement is in sight, and the U.S. measures against Canadian goods now face a legal challenge in the U.S. courts. For Canadian importers, the 50% U.S. duties and import bans matter mainly through Canada’s response: the counter-tariffs in force since September 8 remain the operative rules at the border.
U.S. importer sues over the Section 338 tariffs
On October 20, the Liberty Justice Center filed suit in the U.S. Court of International Trade on behalf of New Jersey food importer Gellert Global Group and a proposed class of importers, challenging the 50% duties imposed on Canadian goods under section 338 of the Tariff Act of 1930. The duties were proclaimed in July for alcoholic beverages, dairy and motor vehicles (Proclamations 11046, 11047 and 11048) and took effect on August 22; further proclamations on September 14 banned imports of certain Canadian goods and changed the scope of the duties. The suit argues that section 338 was superseded by later trade law, including section 301 of the Trade Act of 1974, and that the Canadian policies cited do not justify the tariffs. It seeks a declaration that the tariffs are unlawful, an end to their collection and refunds with interest.
CBC News · Liberty Justice Center · Proclamation 11048 (Federal Register)
No deal expected before the U.S. midterms
CBC reports, citing three sources, that federal officials have been telling industry groups there is no expectation of a Canada–U.S. deal before the November 3 U.S. midterm elections. Canada–U.S. Trade Minister Dominic LeBlanc confirmed the government is not expecting one, saying Canada would not “rush into” an agreement it does not consider in its interest. Importers should plan on the current U.S. measures, and Canada’s counter-tariffs, remaining in place through the end of the year.
Softwood lumber: final results of the U.S. administrative reviews
The U.S. Department of Commerce published the final results of its anti-dumping and countervailing duty administrative reviews on Canadian softwood lumber (period of review: 2024) in the Federal Register on October 19. Rates for non-selected companies are 14.11% (countervailing) and 10.64% (anti-dumping). Adding a further 10% U.S. tariff, the BC Lumber Trade Council puts the combined burden at almost 35%, down from about 45%.
Countervailing duty final results · Anti-dumping final results
$8.7 billion federal–Ontario plan for tariff-hit industries
On October 21, Prime Minister Carney and Premier Ford announced $8.7 billion for steel, auto and critical minerals, including a Joint Steel Action Fund, $2.5 billion over two years for auto capital projects, and up to $1 billion for Ring of Fire roads. The plan maintains the counter-tariffs on U.S. auto imports and promises enhanced CBSA enforcement against steel dumping; it does not change any duty, surtax or remission measure.
