US Imposes 50% Tariff on Canada, Impacting Great Lakes Shipping

en.Wedoany.com Reported - On August 22, the US 50% ad valorem tariff on certain Canadian goods officially took effect. The Chamber of Maritime Commerce (CMC) of Canada expressed concern, stating that the tariff will affect businesses in both the US and Canada, and put pressure on cross-border cargo shipping along the Great Lakes–St. Lawrence Seaway and its industrial customers.

The US imposed the 50% tariff on Canadian dairy products, alcoholic beverages, motor vehicles, and other designated goods under Section 338 of the Tariff Act of 1930. The measure was originally scheduled to take effect on August 19 but was suspended for three days during US-Canada negotiations before taking effect at 12:01 a.m. Eastern Time on August 22. The new tariff can be stacked with other applicable duties, and goods qualifying under the rules of origin of the US-Mexico-Canada Agreement are not automatically exempt; goods already subject to duties under Section 232 of the Trade Expansion Act of 1962 are not covered by this tariff.

The CMC noted that the Great Lakes–St. Lawrence Seaway connects the mining, steel, manufacturing, agriculture, and construction materials supply chains of both countries, with some products requiring multiple cross-border shipments before production is complete. The tariff raises import costs, potentially weakening demand for cargo movement and passing costs on to US businesses that use Canadian raw materials, components, and industrial products.

In 2024, the shipping corridor transported over 142 million tons of cargo, with Canadian fleets carrying approximately 60 million tons, US fleets approximately 71 million tons, and foreign fleets approximately 12.4 million tons. Major cargo types include iron ore, steel, grain, petroleum products, cement, stone, and other industrial raw materials. The CMC proposed that both countries reduce trade barriers through negotiation to maintain the stability of cross-border supply chains and seaway cargo shipping.