The United States Court of International Trade issued an injunction on four executive orders that called upon various national emergencies to enact tariffs on Canada, China and Mexico, and a 10% global tariff plus additional reciprocal tariffs. The injunction called for the government to stop any operations related to those tariff orders, and to issue administrative notices on the permanent injunction within 10 days.

Lawyers representing the Trump administration quickly appealed the decision to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., and have  supporting their case.

The injunction came as the result of several legal cases wherein a few small businesses and several U.S. states filed separate but similar petitions to halt the tariffs, arguing their imposition via the International Emergency Economic Powers Act overstepped presidential powers. The court eventually sided with the plaintiffs and ruled it was appropriate to block the executive orders that imposed the tariffs as a result.

鈥淭he Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,鈥� the court panel鈥檚 opinion reads. 鈥淭he Trafficking Tariffs fail because they do not deal with the threats set forth in those orders.鈥�

Beyond broad tariffs on trading partners, Trump also used the IEEPA as the basis to eliminate the de minimis exemption for imports from China and Hong Kong. The White House plans to end de minimis treatment for other countries鈥� products under the act, once systems are in place to collect the additional duties. Those changes are now in question, too, as a result of the court鈥檚 decision to halt the executive orders that enabled them.

However, tariffs on automobiles, auto parts, steel and aluminum products were not affected by the injunction, as they were implemented under a different trade authority: Section 232 of the Trade Expansion Act. Similarly, any tariffs implemented under Section 301 will remain in place.

On October 18, the House of Commons passed C-244, An Act to amend the Copyright Act (diagnosis, maintenance and repair), sponsored by Liberal Member of Parliament (MP), Wilson Miao. With support from all parties, the bill passed third reading in the House and will be considered by the Senate later this fall.

In his final speech on the proposed legislation, MP Miao did acknowledge the advocacy of the sector, stating:

鈥淪ome witnesses at the standing committee raised concerns over health and safety, cybersecurity and environmental risks that may result from the circumvention of TPMs and the repair of products. They asked for the exclusion of certain categories of products from the application of Bill C-244. I sincerely appreciate that these industry representatives voiced their concern during the study of this bill for our legislative process.

The Copyright Act is a law of general application, the purpose of which is to grant exclusive rights over creative works. It is more desirable that these concerns be addressed in regimes that already regulate those categories of products. Bill C-244 would not prevent these regimes from regulating repairs or addressing issues that may arise in the repair of certain products.鈥�
With passage through the House, senators will have an opportunity to evaluate the legislation through committee meetings and offer amendments.

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S3 Group President & CEO, Richelle Andreas states, 鈥淎l Marques joined S3 in 2016 as the General Manager of S3 Manufacturing and S3 Air Systems. Marques is the driving force behind S3鈥檚 new product development and has a demonstrated track record of building teams for success. Al has played a vital role in the growth that S3 has experienced, and we are very pleased and optimistic to have this level of leadership in such capable hands.鈥� 

Headquartered in Swift Current, Saskatchewan, S3 Group鈥檚 manufacturing facilities have been operating at or near peak capacity. Marques will be leading S3 Group鈥檚 development of a manufacturing expansion facility in Medicine Hat that is on schedule to be operational in the Fall of 2023. Encompassing over 16,000 sq ft of office and manufacturing space, operations will include an engineering centre, metallurgical lab and advanced testing equipment. The facility is expected to produce over 100 jobs in a diversity of fields such as product design, engineering, metallurgical studies and manufacturing. 

With existing manufacturing facilities in both Canada and the US, S3 Group settled on Medicine Hat as the next expansion location for several reasons. The transportation corridor was logistically beneficial, however the regional economic development initiatives towards industry diversification and workforce development, provided an attractive investment atmosphere given S3鈥檚 growth strategy and commitment to sustainable manufacturing. 

Approaching its 60th year in agricultural manufacturing, S3 Group Ltd. provides engineering and manufacturing solutions to some of world鈥檚 most recognized brands in agricultural equipment.

| Member since 1980

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Canadian pork exports are expected to be steady, and the U.S. will remain as the dominant import/export market for Canadian beef and pork products.

Both sectors are vulnerable to COVID-19 pandemic impacts.

Source: USDA颅 Foreign Ag Services

The White House said certain types of aluminum were surging into the U.S. and depressing the industry. The administration argued that a depressed U.S. aluminum industry threatens national security.

鈥淓arlier today I signed a proclamation that defends American industry by reimposing aluminum tariffs on Canada,鈥� President Trump said during a speech at a Whirlpool factory.

鈥淐anada was taking advantage of us, as usual,鈥� he said. 鈥淭he aluminum business was being decimated by Canada, very unfair to our jobs and our great aluminum workers.鈥�

Canada鈥檚 deputy prime minister, Chrystia Freeland, who was a key negotiator in the recent trade agreement, responded, saying the tariffs were 鈥渦nwarranted and unacceptable.鈥�

鈥淚n the time of a global pandemic and an economic crisis, the last thing Canadian and American workers need is new tariffs that will raise costs for manufacturers and consumers, impede the free flow of trade, and hurt provincial and state economies,鈥� she said.

Freeland vowed that Canada would retaliate with proportional tariffs on U.S. exports to Canada.

Major business groups, including the U.S. Chamber of Commerce, the American Automotive Policy Council, which represents the big-three auto makers, and the Beer Institute, criticized the president鈥檚 decision to reopen a trade fight with a traditional close economic ally. They say the tariffs violate the spirit of the free trade agreements.

Because of their national security justification, however, such tariffs don鈥檛 legally violate trade agreements.

Source: Wall Street Journal

The Canadian economy shed 1.01 million jobs on a seasonally adjusted basis, Statistics Canada reported. The March result smashed the previous record for a one-month job loss, which was January 2009, at the height of the global recession, when the economy lost 125,000 positions.

The record plunge was anticipated after officials here revealed that in the span of roughly a month, about 20 percent of the country鈥檚 labor force applied for jobless benefits and income support after authorities ordered sectors of the economy shut down to help curb the spread of the virus.

The government responded with more than $100 billion Canadian ($71 billion U.S.) in direct support to individuals and businesses. Combined with other measures such as deferred tax payments and loan guarantees, the total Canadian fiscal response package represents 11 percent of the country鈥檚 gross domestic product.

鈥淎s shocking as these numbers are, the big issue is how long do the shutdowns last, and thus how persistent is this spike in joblessness,鈥� said Douglas Porter, chief economist at BMO Capital Markets.

Prime Minister Justin Trudeau said last week the current standstill in economic activity鈥攚hich includes the compulsory shutdown of nonessential businesses鈥攃ould last weeks or months.

Canada鈥檚 job drop in March, adjusted on a proportional basis, is the equivalent to over eight million U.S. jobs lost.

Canada collected data for the March jobs report a week later than the U.S. nonfarm payroll report. As a result, Canada鈥檚 jobs report 鈥渕ight have captured more of the sudden-stop in activity, and on a relative basis might mean there鈥檚 at least slightly less downside in the Canadian numbers left to show up than those鈥� in the U.S., said Avery Shenfeld, chief economist at CIBC Capital Markets.

Source: Wall Street Journal

Demonstrators have blocked railways in B.C. and Ontario, crippling crucial arteries for industrial supply chains that operate on a just-in-time basis. And as trains ground to a halt, unions were notified by CN, Canada鈥檚 biggest cargo railway, to be prepared for potential layoffs.

鈥淩ail is the backbone of infrastructure in this country, critical for industry but also for inter-city movement of goods,鈥� said Brian Kingston, vice president of policy, international and fiscal issues at the business council of Canada. 鈥淭his is not the kind of thing you can take a wait-and-see approach on for too long because this is potentially a catastrophe for the Canadian economy.鈥�

The crisis in the nation鈥檚 rail system is hitting at a particularly difficult time for the economy, already wounded by the coronavirus and still recovering from an eight-day strike that shut down CN鈥檚 operations in November. Half of Canadian exports move via rail to ports and then on to global markets, with CN alone moving $250 billion in goods annually, Kingston said.

The Canadian economy added a net 81,100 jobs on a seasonally adjusted basis in August, Statistics Canada said. Market expectations were for a 15,000 increase, according to economists at BMO Capital Markets. All of the new jobs created were in the private sector, although more than two-thirds were part-time.

The strong jobs report more than made up for declines that were posted in
the previous two months and is expected to quell talk of an imminent interest-rate cut. While the Canadian economy is likely to slow in the second half of this year, its recent strength contrasts with many other
global economies.

Germany is facing a looming recession, and the British economy contracted in the second quarter amid uncertainty over the country鈥檚 departure from the European Union.

The U.S. economy, meanwhile, added 130,000 jobs in August, but the pace of
hiring slowed, likely keeping the Federal Reserve on track to lower interest rates again this month. The U.S. economy has continued to expand at a solid pace despite rising trade tensions and global headwinds.
Source: Wall Street Journal

China, a huge and growing customer for lobster, placed heavy tariffs on U.S. lobsters in July 2018 amid rising trade hostilities.

Since then, business boomed in Canada, where cargo planes are coming to Halifax, Nova Scotia, and Moncton, New Brunswick, to handle a growing bump in exports. Canadian fishermen catch the same species of lobster as Americans, who are based mostly in Maine.

America has exported less than 2.2 million pounds of lobster to China this year through June, according to the U.S. federal government. The country exported nearly 12 million pounds during that same period last year. That鈥檚 a more than 80 percent drop.

In Canada, exports to China through June were already approaching 33 million pounds鈥攏early as much as all of 2018.

The value of Canada鈥檚 exports was nearing $200 million in U.S. dollars through June and was almost sure to outstrip last year鈥檚 total of more than $223 million. U.S. exports through June were valued at less than $19 million, more than $70 million behind where they were through June 2018.

Lobster prices paid by U.S. consumers have remained fairly steady during the trade dispute.

U.S. lobster exports to China have fallen off a cliff this year as retaliatory tariffs shift the seafood business north.

China, a huge and growing customer for lobster, placed heavy tariffs on U.S. lobsters in July 2018 amid rising trade hostilities.

Since then, business boomed in Canada, where cargo planes are coming to Halifax, Nova Scotia, and Moncton, New Brunswick, to handle a growing bump in exports. Canadian fishermen catch the same species of lobster as Americans, who are based mostly in Maine.

America has exported less than 2.2 million pounds of lobster to China this year through June, according to the U.S. federal government. The country exported nearly 12 million pounds during that same period last year. That鈥檚 a more than 80 percent drop.

In Canada, exports to China through June were already approaching 33 million pounds鈥攏early as much as all of 2018.

The value of Canada鈥檚 exports was nearing $200 million in U.S. dollars through June and was almost sure to outstrip last year鈥檚 total of more than $223 million. U.S. exports through June were valued at less than $19 million, more than $70 million behind where they were through June 2018.

Lobster prices paid by U.S. consumers have remained fairly steady during the trade dispute.

Source: Omaha World Herald

U.S. ag products on Canada鈥檚 list of new tariffs could include apples, pork, ethanol and wine, MacNaughton said.

The ambassador says Canada鈥檚 new tariffs are not meant to escalate the trade dispute, but just to maintain the dollar-for-dollar response to Trump鈥檚 tariffs.

Source: Brownfield Ag News