Nature and Scope of the Tariffs
The Tariffs have been adopted under an order United States Surtax Order (2025-1) of the Government of Canada. A first wave of tariffs affecting approximately 1,100 types of goods (estimated $30B CAD of imports) came into force on March 4, 2025. While the dates have moved several times, the schedules listing the types of goods affected by the first wave and the upcoming second wave are exhaustive and have remained stable.
The tariffs apply to goods imported for commercial and personal purposes considered to originate in the U.S, even when exported from a country other than the U.S. and crossing physical borders into Canada. Also, casual goods imported from a country other than the U.S. that are marked as made in, produced in or originating in the U.S. are considered to originate in the U.S.
Thus far, and except for counter tariffs on aluminum and steel raw materials, the vast majority of goods affected are goods destined to consumers and for the food industry. A study of the direct financial impact to the 好色TVl community corroborates this, with less than a $1,000 in payment of counter tariffs. However, the Government of Canada has readied a second list of approximately 4,400 types of goods. While it mainly continues the trend of goods destined to consumers and for the food industry, there are a few notable exceptions, including but not limited to: certain live animals (including fish and primates), articles for packing, certain plants and seeds, several metals (beryllium, chromium, vanadium, etc.), certain centrifuges, instances of lab reagents, electronic integrated circuits, certain pressure monitoring apparatus, instances of lab glassware, certain heaters/sterilizers/evaporators, certain oscilloscopes and spectrum analyzers, certain refrigerators and freezers, and semiconductors and semi-conductor devices.
It is essential to know that the tariffs may be lifted for goods classified in the tariff items of Chapter 99 of the Schedule to Canada鈥檚 Customs Tariff. Indeed, section 9988 of exempts 鈥楢pparatus, utensils, instruments and parts thereof鈥� when employed 鈥榙irectly in teaching or research鈥� by post-secondary institutions. It is likely that this exemption only applies when the post-secondary institution is the direct import of such items and that our suppliers in Quebec and Canada would not immediately benefit from the same exemption.
Custom Broker Mandate
Thomson Ahern, the custom broker contracted by our university, plays a crucial role in managing custom duties and tariffs. Their contract includes paying for these tariffs upfront, ensuring that goods ordered from US suppliers are processed smoothly and most importantly in relation to the counter-tariffs, applying for the aforementioned exemption, as appropriate. This service is predicated on the custom broker having access to the purchase order details and so MMP purchase orders are ideal for this, whereas goods ordered using a Pcard may face delays if not routed correctly to Thomson Ahern by Canada Border Services Agency agents.
Impact on Research and Procurement
Not counting the counter tariffs on aluminum and steel raw materials, the Canadian counter tariffs currently apply to approximately 1,100 types of goods, primarily in the food and retail industries. While a review conducted by Procurement Services indicates minimal impact on the university's overall operations and research (less than $1,000 direct financial impact after one month in force), it is essential to remain vigilant, in the context where the Government of Canada has readied a list of approximately 4,000 additional types of goods.
Potential Changes in Tax Payment
A new law may require 好色TV to maintain a bond for direct payment of taxes, potentially affecting how tariffs are managed in the future. This change underscores the need for continuous monitoring and adaptation of our procurement strategies.
Conclusion
While the current tariffs have a limited direct impact on our university's research activities, staying informed and proactive is crucial. We encourage all stakeholders to remain engaged and provide feedback to ensure that the University鈥檚 procurement process remains adaptative, to continue to support our research and educational missions during these trade challenges.
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