Tax & Trade Blog

---

STATUTORY APPEAL OR JUDICIAL REVIEW?

THE DIFFERENCES & WHY THE FORMER MIGHT BE BETTER!

A recent decision by the Federal Court of Appeal (the “FCA”) has put into focus the distinction between a statutory right of appeal - which might be constrained in scope in some instances - and a judicial review application, which may offer an alternative avenue to deal with those constraints.

Of particular interest is the FCA’s discussion in Best Buy Canada Ltd. v. Canada (Border Services Agency) on why, overall, choosing to proceed solely with a statutory right of appeal might be more beneficial to taxpayers and importers.

---

CHINESE SURTAX RELIEF IMPLEMENTED

 REMISSION AVAILABLE FOR SURTAXES ON CERTAIN CHINESE GOODS

As we blogged on previously here and here, the surtaxes imposed on certain Chinese goods imported into Canada have the potential to place undue burdens on Canadian businesses relying on those products. 

The recently implemented China Surtax Remission Order (2024) (the “Order”) provides much needed remission for Canadian businesses.  Continue reading this Report for more details.

---

"RETALIATORY TARIFFS - STILL A BAD IDEA?

UNILATERAL FREE TRADE WOULD BE A BETTER ECONOMIC IDEA

 The trade relationship between the United States (“US”) and Canada has eroded with tensions devolving into a trade war.

As of today, the US imposed tariffs on Canadian goods appear to be "off again" until April 2^nd, but Canada's first round of "retaliation tariffs" are still "on" ("CT-R1").   That is strange.  Canada is "on" despite no current US tariffs to retaliate against?  Is Canada now the sole aggressor?

Should this on-again-off-again trade war continue to escalate, the US will likely impose even further reciprocal tariffs on Canadian goods, along with additional tariffs on Canadian steel and aluminum products, and timber, lumber and derivative products. In turn, Canada is planning to implement a more robust second round of tariffs targetting an additional $125 billion in US goods ("CT-R2").  

---

US CBP AUDITS TARGETING CANADIANS?

CANADIAN EXPORTERS SUBJECT TO US CBP REVIEW, AUDIT & INVESTIGATION!

Current US vs. Canada trade tensions may be extending into US Customs & Border Protection ("CBP") audit, review and investigative activities – at least as they relate to exports to the US from Canada.

Viewed from the US perspective, these are "imported goods", and are required to be imported to the US correctly.

We have seen an uptick in US CBP inquiries, audits, reviews and investigations of Canadian businesses selling into the US, and that should be raising an alarm for all Canadian exporters.

---

TARIFF UPDATE 101

TRUMP TARIFFS, CANADA'S COUNTERMEASURES TAKE EFFECT

The trade dispute between the United States (“US”) and Canada has now entered a new phase, as the US imposed 25 percent tariffs on Canadian goods and 10 percent tariffs on Canadian energy products on March 4, 2025 .  Canada responded in kind and implemented the first phase of its previously announced retaliatory countermeasures through the United States Surtax Order (2025-1) .  The list of targetted US origin goods remains the same as the prior list , but for the addition of 14 new items under Chapters 98 and 99 of the Customs Tariff Schedule, although these new items appear to be absent from a news release published by the Department of Finance Canada.