Expeditors (EXPD) investor relations material

Overview of new Canadian counter-tariffs

• Canada will implement new counter-tariffs on over 700 U.S.-origin product lines, with surtaxes ranging from 15% to 50%, effective September 8th, targeting approximately CAD 27.6 billion in imports.

• The measures are a direct response to recent U.S. actions and are designed as a dollar-for-dollar economic countermeasure, transforming the issue into a two-way trade disruption.

• Importers must review product classifications, landed costs, and supply chain exposure, and proactively model financial impacts before the tariffs take effect.

• The tiered surtax structure means financial impact will vary by product, making accurate classification and origin documentation critical.

• The implementation window is short, and businesses should not assume the measures will be withdrawn.

Key impacts and compliance considerations

• Importers will face significantly higher landed costs, with additional surtaxes on top of normal duties and taxes, especially for steel, aluminum, furniture, and apparel.

• Cash flow pressures will increase as surtaxes must be paid at import unless relief programs apply, impacting working capital for frequent or large shipments.

• Enhanced origin verification and accurate HS classification are essential to avoid penalties and ensure compliance.

• Many importers are expected to shift sourcing to non-U.S. suppliers, particularly in heavily affected sectors.

• Opportunities exist for risk reduction through bonded warehouses, duty deferral, and CBSA remissions and exemptions.

Government relief and mitigation programs

• Ottawa has announced a CAD 7.5 billion relief package, including loans, worker support, and project funding to offset economic damage.

• The package includes rapid response EI benefits, a diversification fund for capital projects, regional initiatives for SMEs, and additional liquidity streams.

• These programs aim to protect jobs, support affected industries, and secure supply chains during the tariff period.