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Originally Posted by simmer2
So now the US government is largely just placing tariffs on things that aren't compliant with USMCA, which is how it was before.
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Eh, not quite. Lots of products have been exported previously under Most Favoured Nation rules.
https://globalnews.ca/news/11119813/...ce-us-tariffs/
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While the White House estimates that only 38 per cent of imports from Canada claimed a USMCA exemption last year, experts say the proportion of compliant cargo could easily breach the halfway mark, since companies enjoying effectively free trade had little incentive to certify their wares until now.
“A lot of potentially CUSMA-compliant goods that are manufactured in Canada don’t certify as CUSMA because they didn’t need to,” said Jesse Goldman, chair of the international trade group at Osler, Hoskin and Harcourt LLP, pointing to U.S. “most-favoured nation” (MFN) tariff rates that were next to nil.
“Why go to the trouble of providing all this information, keeping the records and documents, potentially subjecting ourselves to a verification audit from U.S. customs authorities when we can just sell the good on an MFN basis, which also has a zero rate of duty?”
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