Canada Sets Sept. 8 Countertariffs; Main Paint Headings Not Listed

USA Canada Trade War and United States — Credit: wildpixel / iStock via Getty Images Plus

Need to Know

Canada will impose countertariffs of 15%, 25% and 50% on $27.6 billion in U.S.-origin goods beginning at 12:01 a.m. Sept. 8.
A PCI review found no entries under HS headings 3208, 3209 or 3210, which cover many paints and varnishes, or pigment heading 3206.
Several adjacent categories are included, such as self-adhesive plastic film and painted, varnished or plastics-coated steel.

The Canadian government has published the products that will face new countertariffs in response to U.S. duties on Canadian goods.

Beginning at 12:01 a.m. Sept. 8, Canada will apply tariffs of 15%, 25% or 50% to U.S.-origin goods covering approximately $27.6 billion in annual imports. The rate assigned to each product will match the corresponding U.S. tariff rate.

The countermeasures will focus on products in sectors including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics. They apply only to goods originating in the United States. U.S. goods already in transit to Canada when the tariffs take effect will not be subject to the countermeasures.

A PCI review of the government’s tariff schedule found no entries under HS headings 3208, 3209 or 3210, the principal headings covering many solventborne, waterborne and other paints and varnishes. The list also does not contain an entry under heading 3206, which covers several pigment and coloring-material classifications.

The absence of those headings should not be interpreted as a general exemption for the coatings supply chain. The schedule includes several downstream and adjacent products, including PVC wall and floor coverings, self-adhesive plastic film and tape and flat-rolled steel that is painted, varnished or coated with plastics. Those products will face 50% tariffs.

Canada also announced $7.5 billion in new and expanded support measures for tariff-affected businesses and workers. The package includes regional assistance for small and medium-sized businesses, additional liquidity programs and funding for business diversification, worker retention and retraining.

Sources: Department of Finance Canada countermeasure announcement and official tariff schedule.

The countermeasures are part of PCI’s continuing industry news coverage of trade policies affecting coatings and CASE supply chains.

Source: This article was developed with the assistance of artificial intelligence.