Many U.S. imports will avoid Canada's new countertariffs through relief system

Companies are set to avoid a significant portion of Ottawa's new tariffs on $28-billion worth of U.S. imports through an existing relief system, an analysis shows.

Roughly one-third of the 629 American products newly targeted for duties are already named in remission orders and carry some kind of tariff relief, according to an analysis by The Globe and Mail.

That share rises to more than three-fifths for the roughly 300 steel and aluminum goods on the list.

READ MORE: Stelco layoffs in Hamilton signal risk to Canada's steel industry, union says

READ MORE: U.S. bans select Canadian imports including alcohol and motorcycles

The Department of Finance said in a statement that it is already receiving tariff relief requests related to the Sept. 8 countertariffs, which range from 15 per cent to 50 per cent.

"You want to push back, but you realize that this whole thing is really a tax on both our economies that are highly integrated," said Tony Stillo, director of Canada Economics at Oxford Economics.

The tariff relief program lets companies avoid import duties if they can prove the product cannot be sourced domestically or from non-U.S. suppliers, or if the tariff would cause severe damage to the Canadian economy.

Throughout the 18-month trade dispute, Canadian importers have relied heavily on tariff relief, government numbers show.

Canada assessed $9.7-billion in gross revenue from customs duties on U.S. imports between March, 2025, and April 17, 2026, of which $5.5-billion, or roughly 57 per cent, was remitted back to importers, according to this year's spring economic update.

The analysis focused on product-specific remission orders published in the Canada Gazette, most of which were granted to businesses that applied for them.

However, there is also "horizontal" tariff relief that is automatically available on all imported products if they are to be used for specific purposes, such as steel for auto and aerospace manufacturing.

The government does not publish any details on these horizontal remission claims, so the number of products receiving relief is likely even higher than the analysis shows.

Jessica Horwitz, a trade lawyer at Bennett Jones LLP, said companies with a compelling case have generally been successful, though the turnaround time can range between three and eight months.

"The Department of Finance does take into consideration whether a request is urgent," Horwitz said.

Some of the remissions that have been granted are permanent, while others are time-limited, giving companies a runway to adjust their supply chains.

"The government wants to give businesses an opportunity to pivot those supply chains, but still urge them to actually move forward with that change and not remain with the status quo," Horwitz said.

Permanent remissions tend to be granted where there is no reasonable likelihood of pivoting away from a U.S. supplier, such as for a specialty grade of steel no Canadian producer can make.

Among companies identified in open remission orders using their business numbers, a few big names stand out.

Magna International Inc. holds eight remission approvals, more than any other company in the schedules, covering 17 tariff categories of steel, all of which now carry an increased 50-per-cent duty.

"As a global automotive supplier, Magna evaluates a variety of mechanisms available under applicable trade regulations and remains focused on serving customers while complying with all laws and policies," Dave Niemiec, director of corporate external communications at Magna, wrote in an email.

Another company, MHI Canada Aerospace, Inc., has two approvals.

With files from The Globe and Mail