Repeal of U.S. Aluminum Surtax

Summary#

The United States Surtax Order (Aluminum 2020) has been formally repealed. Practically, this cancels a planned 10% surtax on certain aluminum imports from the United States and the repeal is retroactive to September 16, 2020, so importers are not liable for surtaxes back to that date.

What it does#

• Repeals the United States Surtax Order (Aluminum 2020), which had set planned surtaxes of 10% on certain aluminum and aluminum-containing goods.
• The surtaxes would have applied to goods listed under 44 tariff items and covered about $3.6 billion in annual imports (2017–2019 average).
• The repeal takes effect retroactively as of September 16, 2020.
• Background context: the action responds to the United States removing its tariffs on Canadian aluminum (the U.S. announced restoration of tariff-free treatment on September 15, 2020, and issued a Presidential Proclamation on October 27, 2020).

Who's affected#

• Canadian businesses that import aluminum and aluminum-containing products from the United States.
• Companies in North American supply chains that rely on cross-border aluminum trade, including many small businesses.
• Canada Border Services Agency will handle any administrative details at the border related to the repeal.

Why it matters#

• Importers will not have to pay the planned 10% surtax on qualifying aluminum goods for shipments since September 16, 2020, reducing costs and uncertainty for businesses.
• It helps keep integrated supply chains functioning without extra tariffs between Canada and the United States.
• The repeal is a formal confirmation that Canada’s countermeasure is no longer needed now that U.S. tariffs were removed.