Connect with us
[bsa_pro_ad_space id=12]

Business

A Look at Canada’s Import Tariffs

Published

5 minute read

  By David Clinton

Speaking of foreign tariffs, Canada’s hands are not exactly clean

It’s one thing to oppose the various iterations of recently threatened U.S. tariffs: many of those carry the potential to inflict serious harm on Canada and Canadians and we’re right to be nervous. However, whether or not Canada’s many external-facing policies use the term tariff in their titles, we have more than a few protectionist trade barriers of our own. I thought it would be useful to list some of Canada’s more obvious protectionist policies.

Unfortunately, one thing these examples lack is context. It’s no secret that international trade is complicated. Some of the trade barriers I’m going to describe are policy responses to legitimate safety issues. And, even among those restrictions that were designed to protect local industries, I couldn’t usefully estimate whether there are enough of them to define our total trade ecosystem.Nevertheless, here’s what I did find.The Customs Tariff Act governs Canada’s import tariffs. All goods entering Canada from countries on the Most-Favored-Nation list that aren’t eligible for lower rates through trade agreements are subject to tariff charges as high as 17 percent. Here are some practical cases of imports from the U.S. that aren’t covered by the CUSMA trade agreement:

  • U.S. t-shirts using imported fabric could face an 18 percent tariff, adding $18,000 to a $100,000 shipment.
  • A $30,000 U.S.-assembled car with Asian parts incurs $1,830 in duties.
  • $50,000 of U.S. strawberries could face $4,250 in seasonal duties if applied.
  • $200,000 of steel wire from the U.S. could face $108,000 in extra anti-dumping duties.

Canada’s supply management system for dairy, poultry, and eggs is a notorious example of a policy that looks, walks, and quacks just like a duck an import tariff. Supply management is governed by a combination of federal and provincial laws, including the Export and Import Permits Act and the Farm Products Agencies Act. Regulations can hit over-quota imported cheese with rates as high as 245.5 percent and chicken can be taxed at 238 percent. And that’s assuming you somehow manage to score an import permit from Global Affairs Canada.The Canadian Food Inspection Agency enforces strict sanitary and phytosanitary (SPS) measures that often require layers of inspections or certification requirements that can significantly raise compliance costs. The differences between some of those requirements and an economic tariff are not always obvious.The Canada Border Services Agency collects an excise tax on imported liquor. For example, a U.S. exporter looking to ship 100 litres of 40 percent ABV whiskey to Canada will face a duty of $467.84 (100 × 0.4 × $11.696). That duty must be paid by the importer.In addition, various provincial liquor control boards apply fees and markup costs on imported alcohol, which effectively create price barriers for foreign products (when they’re even allowed on store shelves).Book Importation Regulations limit parallel imports of foreign editions in order to protect Canadian publishers. I assume this is why so many major international publishing companies maintain Canadian offices and, on paper at least (so to speak), publish special Canadian editions.The various Canadian Content (CanCon) rules governing broadcast media will also undermine the principle of free trade, even if those rules won’t necessarily increase import costs.Here are some examples of regulatory compliance rules that aren’t always just about safety:

  • Electrical product safety certification rules sometimes requires foreign electronics manufacturers to repeat testing despite already having UL certification, adding 3-6 months to market entry.
  • US medical device companies can face duplication of regulatory submissions and maintenance of separate quality systems due to Health Canada requirements.
  • Chemical manufacturers must submit detailed testing data specific to Canadian requirements in order to register their products.
  • Small US food producers must implement separate packaging lines for Canadian-bound products to satisfy nutrition labeling requirements.

This isn’t to say there’s necessarily anything morally wrong with any of those rules. And, as I noted, I’m not sure whether Canada’s overall trade profile is more restrictive than our international peers. But, when faced with foreign tariffs, it can’t be said that Canada’s hands are perfectly clean.

Subscribe to The Audit. For the full experience, upgrade your subscription.

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Business

Largest fraud in US history? Independent Journalist visits numerous daycare centres with no children, revealing massive scam

Published on

A young journalist has uncovered perhaps the largest fraud scheme in US history. 

He certainly isn’t a polished reporter with many years of experience, but 23 year old independent journalist Nick Shirley seems to be getting the job done. Shirley has released an incredible video which appears to outline fraud after fraud after fraud in what appears to be a massive taxpayer funded scheme involving up to $9 Billion Dollars.

In one day of traveling around Minneapolis-St. Paul, Shirley appears to uncover over $100 million in fraudulent operations.

Continue Reading

Business

“Magnitude cannot be overstated”: Minnesota aid scam may reach $9 billion

Published on

MXM logo MxM News

Federal prosecutors say Minnesota’s exploding social-services fraud scandal may now rival nearly the entire economy of Somalia, with as much as $9 billion allegedly stolen from taxpayer-funded programs in what authorities describe as industrial-scale abuse that unfolded largely under the watch of Democrat Gov. Tim Walz. The staggering new estimate is almost nine times higher than the roughly $1 billion figure previously suspected and amounts to about half of the $18 billion in federal funds routed through Minnesota-run social-services programs since 2018, according to prosecutors. “The magnitude cannot be overstated,” First Assistant U.S. Attorney Joe Thompson said Thursday, stressing that investigators are still uncovering massive schemes. “This is not a handful of bad actors. It’s staggering, industrial-scale fraud. Every day we look under a rock and find another $50 million fraud operation.”

Authorities say the alleged theft went far beyond routine overbilling. Dozens of defendants — the vast majority tied to Minnesota’s Somali community — are accused of creating sham businesses and nonprofits that claimed to provide housing assistance, food aid, or health-care services that never existed, then billing state programs backed by federal dollars. Thompson said the opportunity became so lucrative it attracted what he called “fraud tourism,” with out-of-state operators traveling to Minnesota to cash in. Charges announced Thursday against six more people bring the total number of defendants to 92.

Among the newly charged are Anthony Waddell Jefferson, 37, and Lester Brown, 53, who prosecutors say traveled from Philadelphia to Minnesota after spotting what they believed was easy money in the state’s housing assistance system. The pair allegedly embedded themselves in shelters and affordable-housing networks to pose as legitimate providers, then recruited relatives and associates to fabricate client notes. Prosecutors say they submitted about $3.5 million in false claims to the state’s Housing Stability Services Program for roughly 230 supposed clients.

Other cases show how deeply the alleged fraud penetrated Minnesota’s health-care programs. Abdinajib Hassan Yussuf, 27, is accused of setting up a bogus autism therapy nonprofit that paid parents to enroll children regardless of diagnosis, then billed the state for services never delivered, netting roughly $6 million. Another defendant, Asha Farhan Hassan, 28, allegedly participated in a separate autism scheme that generated $14 million in fraudulent reimbursements, while also pocketing nearly $500,000 through the notorious Feeding Our Future food-aid scandal. “Roughly two dozen Feeding Our Future defendants were getting money from autism clinics,” Thompson said. “That’s how we learned about the autism fraud.”

The broader scandal began to unravel in 2022 when Feeding Our Future collapsed under federal investigation, but prosecutors say only in recent months has the true scope of the alleged theft come into focus. Investigators allege large sums were wired overseas or spent on luxury vehicles and other high-end purchases. The revelations have fueled political fallout in Minnesota and prompted renewed federal scrutiny of immigration-linked fraud as well as criticism of state oversight failures. Walz, who is seeking re-election in 2026 after serving as Kamala Harris’ running mate in 2024, defended his administration Thursday, saying, “We will not tolerate fraud, and we will continue to work with federal partners to ensure fraud is stopped and fraudsters are caught.” Prosecutors, however, made clear the investigation is far from finished — and warned the final tally could climb even higher.

Continue Reading

Trending

X