As I am sure you are aware, recent challenges in trade talks and subsequent disputes between Canada and the United States have resulted in the implementation of additional tariffs being applied to specific product categories between our two countries. Unfortunately, these new changes are immediate and without exception for all affected product classifications effective July 1, 2018.
We continue our due diligence in the identification by product to assess the impact these changes will have. As the middle man in the supply chain we will be levied these tariffs at time of importation and we have no option but to pass these costs on.
Following this notice are some resources to help in the education process. We have provided a link to the Government of Canada document outlining the specific Countermeasures by Product Category being imposed by Canada on United States Goods entering Canada effective July 1, 2018. The categories in the Exhibit at the end of this letter are where we are expecting to have tariff issues with products that we import. This may not be the complete list that will impact our products; we are waiting to hear from our manufacturing base on any other items that may be impacted.
We understand the hardship these increased prices may cause. We are diligently looking at alternative sources to mitigate and control these additional costs in the medium term.
We will continue to keep you advised of new information and updates as they become available. In the meantime, please contact your Packaging Specialist with any questions or concerns you may have.
Sincerely,
John Ashby
President