How much longer are we going to go through all this upheaval?
The threat of NAFTA elimination, labour shortages, surcharges on aluminum and steel, anti-dumping duties on softwood lumber and now a 25% surcharge on several Chinese products. We can safely say there is movement in world trade.
Surcharges: What are the impacts on the Québec economy?
Labour shortages indicate a healthy economy, which is a welcome problem, but still a problem for businesses looking to expand. This shortage is not only experienced in Québec, but also elsewhere in the world, and the situation could change with all the surcharges imposed, resulting in job losses and an increase in the unemployment rate.
Planning Imports and Exports in Times of Uncertainty
The uncertainty created by the Trump administration about free trade agreements and surcharges does nothing to help businesses. After the surcharges on some steel and aluminum products, from which Canada, Mexico and the European Union were exempt, new surcharges are imposed on products originating in China.
Remember that all Chinese products, even if exported from Canada, will be subject to this 25% surcharge. Several Canadian businesses will therefore be affected by this new surcharge.
It’s hard to figure out what the future holds with such an unpredictable American president. Will the midterm elections affect the changes we are currently experiencing? Let’s hope so!
In the meantime, it’s best to prepare by looking at the impact of eliminating NAFTA, imposing surcharges on steel and aluminum, and the new surcharge on Chinese products.
Contact W2C specialists at email@example.com or by phone at 514-368-2637, option 2 now to identify which products are affected by these changes and the rates applied, and forecast your expenses and revenues.