The Trump administration’s tariffs on US imports and Canada’s retaliatory actions have major implications for Canadian companies and their commercial transactions. Counsel should understand the resulting contract issues and the potential use of contract clauses or other avenues that may provide relief for affected companies.

U.S. Customs and Border Protection has issued new guidance confirming that USMCA-compliant parts produced in Canada will be exempt from the new Trump tariffs.

The bulletin from U.S. Customs and Border Protection says eligible auto parts under the Canada-United States-Mexico Agreement will be subject to a zero per cent tariff.