• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/7/2014

Canada - Potential 100% surtax on select U.S. imports 

March 7:  Canada may proceed with a100% surtax on select U.S. imports in the first half of 2015. The tax may affect Canadian businesses that import or export products.

This proposed measure is a result of the United State's refusal to change its country-of-origin labelling (COOL) in the U.S. 2008 Farm Bill, which Canada alleges discriminates against its livestock and violates World Trade Organization (WTO) obligations.

Canada published a list of U.S. imports on which it is prepared to impose the surtax in the first half of 2015 if the United States does not modify its COOL law, including the following products:

  • Corn
  • Ethyl alcohol and other spirits, denatured, of any strength
  • Live bovine animals
  • Live swine
  • Bread, pastry, cakes, biscuits, and other bakers' ware

Read a March 2014 report [PDF 53 KB] prepared by the KPMG member firm in Canada: Canadian Importers - Potential Canada-U.S. Trade Retaliation on Horizon

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now