Commercial War The effect of a waltz of customs duties

For many companies, this is a quo status, although the customs duties of Canadian exports to the United States have been recorded, from 25 % to 35 %. However, some industries are more influenced by more than others. Entrepreneurs and consumers are beginning to experience some fatigue in the face of this tariff. Here are five questions that need to be evaluated.

Can these higher rights really change anything?

Almost. And here is the reason: US President Donald Trump’s decree is leaving a price exemption for all products in accordance with the Canadian united states-USA (ACEUM). This measure changes the situation because it allows almost all exports to exceed the boundary without overall duties. The Royal Bank estimates the share of products that are freely circulating.

“The rate (…) could even increase, because several manufacturers who have not done so will be looking for a certification that confirms that their goods are truly Canadian origin,” says Rosemarie Bégin, the main economy and political director in PWC. Recall that the product in accordance with ACEUM meets a comprehensive set of criteria that describes the level of production that must be performed in North America, so it is eligible for preferential treatment. However, the shield of the free trade agreement is not eternal, because it can be revised next year-what President Trump has already indicated that he wants to do.

So did we do well?

This is the impression we could have. But there are other elements. The White House also determined duties that focus on a specific industry. For example, aluminum and steel are aimed at 50 % tax, while Washington is applied to the non -American content of vehicles balanced south of the border.

In Quebec, the great producers of gray metals, such as Rio Tinto and Alcoa, were able to give part of the invoice to their customers or redirect shipments to other markets, but many transformers (assembly, forming, cutting components, etc.). “It is not easy for them to export outside North America,” said Charlotte Larammee, President and Gelerk of Aluquebec, an industrial cluster of aluminum. There are therefore a reduction in volume, which puts pressure on liquidity. Energy is also taxed up to 10 % of the United States.

Did Canada replied?

He is one of the few countries with China to do so. Last March, Ottawa ordered 25 % customs duties of approximately 1,200 US products (food products, clothing, households, etc.), the value of which is more than 60 billion. 25 % tax was also imposed on certain American components imported from the south of the border.

On Friday, Carney did not indicate whether to apply new countermeasures to US rights. This component less promoted, gives society a lot of headaches forced to obtain from the United States. This is the case of Brault & Bouthillier, specializing in the sale of toys and teaching materials. “These counteracts threaten importers who see their costs increase and that cannot pass the whole increase to their customers,” regrets his President Paul Le Brun, in a telephone interview.

How do entrepreneurs with customs waltz live?

“It is a situation that bullshit,” admits Jasmin Guénette, vice president of national matters in the Canadian Federation of Independent Society (FCEI). “It requires energy,” he continues. You must have a hard time bark to be an entrepreneur and chief of small and medium -sized enterprises that run. Jasmine Guénette compares the current roller coaster situation, which is forced cheerful -in which entrepreneurs do not want to be.

According to him, the optimism of many entrepreneurs is tested. “It is obvious that they are not all companies, all sectors, all regions that are influenced in the same way. (…) For some, the current situations are difficult and costly, so stress and anxiety are high while the level of optimism is low. »

Do we face a certain extent together?

“When you do and import or export, or if you have customers or suppliers that matters, you have to be aware of. You have no choice,” says Jasmin Guénette of FCEI. If they only inform employees and customers who also ask questions. However, Jasmin Guénette is categorical: all entrepreneurs who represent the Federation would like to move on. “Our members are getting tanned,” he said. Changes, announcements, prices … ”

Imagine consumers in general. Drint hearing on customs obligations that come or not, negotiations, reports. By reading data ranging from 10 % to 25 % to 35 %, some consumers could get tired and stop interested in this subject. “Even for economists we get lost a bit; (in) agreements follow each other, it is difficult to know what is included, what is not …”, estimates Professor Philippe d’Astous, director of the Hec Montreal Laboratory. According to him, the effects of 35 % of rights compared to the effects of the rights of 25 % “This provides a lot of information for consumers”. And it can actually get tired. “Finally,” the professor continues, consumers will mainly look at them: how prices change for the goods they buy. For example, in a grocery store, some brands indicate products affected by the small “T” at a “price”. There it becomes tangible … ”