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ARTICLE · 14 MAY 2019

Option To Save U.S. Trump Tariffs On Chinese Goods - Use 3PL Warehouse In Canada

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There are many other Canadian regulatory issues depending on the goods in question.

CanadaInternational Law
Cyndee Todgham Cherniak
Cyndee Todgham Cherniak
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On May 10, 2019, the United States increased tariff rates on many goods from China from 10% to 25% (referred to as the "U.S. Trump Tariffs").  The U.S. Trump Tariffs are a form of customs duty that is payable by the importer and is passed on to U.S. consumers.  It looks like the U.S. Trump Tariffs will be in place for some time and the U.S. issues with China are complex.

As a result of the new higher U.S. Trump Tariffs, many U.S. companies that import goods from China will have to start paying significant amounts of new customs duties on goods imported into the United States from China.  Many of those U.S. companies re-export those same goods to Canada for sale to Canadian wholesalers, retailers, distributors or consumers.  If the U.S. company does not have a Canadian subsidiary and/or a Canadian warehouse, they would pay U.S. Trump Tariffs to the U.S. government upon importation of the goods into the United States and will have to apply for duty drawback when the

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