Tax & Trade Blog

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BEST PRACTICES FOR FORCED LABOUR REPORTING

CANADA PUBLISHED BEST PRACTICES ADVICE FOR FORCED LABOUR REPORTING

As we wrote here, Canada joined the United Kingdom and Australia last year in adopting a joint global reporting template for forced labour and child labour disclosures. The new template consolidates the legislative reporting requirements of all three countries and is intended to simplify reporting for organizations operating across multiple jurisdictions.

In practice, Canadian reporting entities often face challenges in producing properly scoped reports that align with Public Safety Canada’s expectations. In response, Public Safety Canada (“PSC”) has published "Best Practices" tips and updated resources, aimed at improving report quality and supporting ongoing compliance under the Supply Chains Act.

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TRUMP'S NEW TARIFFS - NOT HURTING CANADA?

TRUMP TARIFFS DO NOT APPLY TO CUSMA GOODS

Much of the current commentary surrounding the new US tariff measures has overlooked a central point – namely, that broad-based US tariff actions do NOT apply to Canadian-origin goods that properly qualify under CUSMA.

There are certainly some exceptions like in militarily strategic sectors (like steel and aluminum) and in sensitive economic sectors (like automotives and lumber) but the wider narrative suggesting sweeping tariff exposure for Canadian exports to the US is probably overstated. We provide additional insight below.

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BATTLE WON BUT TRADE WAR NOT OVER?

US SUPREME COURT RULES INITIAL ROUND OF IEEPA TARIFFS UNLAWFUL

In a major development of the Canada-US Trade War (the “Trade War”), the Supreme Court of the United States (“SCOTUS”) in its decision of Learning Resources, Inc. et al. v. Trump, No. 24–1287 (“Learning Resources”), ruled that President Trump’s initial round of tariffs under the International Emergency Economic Powers Act (“IEEPA”) targeting Canada, Mexico and China are unlawful.

In this report, we provide a brief review of SCOTUS’ decision in Learning Resources, along with some implications for the Trade War moving forward, including President Trump’s potential response.

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AUTOMOTIVE REPORT: TARIFF CHAPTER 87

CBSA'S VERIFICATION AUDITS TARGET VEHICLE TIRES

For many in the automotive industry, there is a temptation to import foreign-made goods (i.e., non-USMCA-qualifying) for use in production processes or as parts and sub-components for vehicles and automotive systems. They are often less costly.

At the same time, many of these imports attract significantly higher duty rates, which can create pressures to classify them under potentially alternative tariff headings with lower rates of duty.

Our recent file experience has demonstrated that this is often a short-lived strategy, as the CBSA’s verification procedures will eventually put these classification decisions to the ultimate test.

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CBSA INVESTIGATING OCTG FROM AUSTRIA!

DUMPING OF CERTAIN OIL & GAS WELL CASING FROM AUSTRIA

On February 2, 2026, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of certain oil and gas well casing from Austria. This investigation was prompted by a joint complaint filed by a manufacturer in Alberta.

The goods under investigation are more specifically described as:

Oil and gas well casing and green tube casing, made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 4 ½” inches to 9 5/8” inches (114.3 mm to 245.2 mm), meeting or supplied to meet American Petroleum Institute (API) specification 5CT or equivalent and/or enhanced proprietary standards, in all grades, originating in or exported from the Republic of Austria.