Lighting Makes the List of New 50% Canadian Tariffs
On July 20 President Trump announced additional duties up to 50% to offset “Canadian discrimination against the commerce of the United States,” which will take effect 30 days from now on August 20.
In an unanticipated announcement, President Trump issued a proclamation under Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338) (section 338), which dates back to the Great Depression. As such, Section 338 of the Tariff Act of 1930 “empowers the President to, among other things, impose duties on imports of a foreign country to offset the burden or disadvantage from a foreign country’s discrimination against or unequal imposition on the commerce of the United States.”
The administration stated the tariffs are punishment for what it perceives to be Canadian discrimination against three U.S. industries: motor vehicles, dairy and alcohol.
In addition to categories as disparate as wallpaper, paper products, plywood, cosmetic makeup and nailcare products, silver and gold jewelry, smartphones, semiconductor media (but not including LED), Christmas ornaments, golf equipment and ice skates, swimming pools, video game consoles, paintings, curtains, and furniture comes lighting-specific items.
Product 9405.11.60: Chandeliers and other electric ceiling or wall lighting fixtures, of base metal (other than brass), designed for use solely with LED sources
Product 9405.11.80: Chandeliers and other electric ceiling or wall lighting fixtures, not of base metal, designed for use solely with LED sources
Product 9405.42.60: Electric lamps and lighting fixtures nesoi, of base metal (other than brass), not photovoltaic, designed for use solely with LED sources
Product 9405.42.84: Electric lamps and lighting fixtures nesoi, not of base metal, not photovoltaic, designed for use solely with LED sources
Product 9405.99.40: Parts of lamps, lighting fixtures, illuminated signs and the like, not of glass, plastics or brass
The ceiling fan category was absent from the list, presumably because there are no ceiling fans manufactured in Canada.
The tariffs take effect on August 20 on goods that enter the U.S. or are shipped from a warehouse starting on that date.
Following the aforementioned announcement from the White House, the Prime Minister of Canada Mark Carney, released the following statement: “Today, the United States administration announced its intention to impose a new 50% tariff on a significant number of Canadian goods. This is the latest in a series of unilateral U.S. trade actions that began with the U.S. imposing a series of tariffs in direct violation of the Canada-United States-Mexico Agreement (CUSMA), the free trade agreement between Canada, the United States, and Mexico.” He added, “Recognizing that the U.S. has been transforming all of its trade relationships, including those covered under CUSMA, over the past 18 months, Canada has made a series of detailed and comprehensive proposals to resolve this dispute and to modernize CUSMA. We stand ready to intensify those discussions in the coming weeks.”
