U.S. Imposes 40% Duty on Goods Transshipped to Skirt Canada Tariff

The White House said late Thursday that any merchandise determined to have been routed through third countries to avoid the existing 35% tariff on imports from Canada will be hit with a higher 40% transshipment duty. The measure, announced by President Donald Trump’s trade team, is aimed at closing loopholes that officials say have encouraged shippers to disguise the origin of Canadian products in order to secure lower levies. The administration did not specify a start date, suggesting the penalty takes immediate effect.