(Kitco News) – Notwithstanding the erroneous news reports which circulated on both sides of the border earlier this week, Canada’s retaliatory tariffs against U.S. precious metals imports – including a 25% surcharge on gold, silver, platinum, and palladium products – have not been lifted or lowered, and remain in effect, according to Canadian government.
“To address the U.S.’ unwarranted tariffs, Canada has put in place its largest ever responsive tariff package,” a Department of Finance official told Kitco News. “This includes tariffs on $60 billion of imports from the U.S., covering primarily end-use goods, as well as steel, aluminum, and certain other metal products, plus $35.6 billion of auto imports.”
“To ensure Canada’s tariff response was calibrated to respond to the U.S. while limiting economic harm to Canada, on April 15, we announced targeted and temporary six-month relief to provide Canadian companies more time to adjust their supply chains and reduce the reliance on U.S. suppliers,” the official said. “This temporary relief applies only to certain listed entities that support public health, public safety, and national security, as well as goods used in manufacturing, processing, or food and beverage packaging. Goods used for all other purposes —such as retail consumer products and steel used in construction or infrastructure—all face tariffs without reprieve.”
“The scope of products covered by Canada’s counter-tariffs, including those on certain precious metals, remains unchanged.”
And based on the latest Canadian government data, the impact on trade in precious metals between Canada and the United States was swift and significant.
According to a May 6 report from Statistics Canada, “Canadian exports of metal and non-metallic mineral products decreased 3.2% in March, but that was mainly the result of lower exports of unwrought gold, silver and platinum metals (-8.9%),” the report noted. This means Canadian exports of precious metals declined as much as “[e]xports of basic and semi-finished iron and steel products (-9.0%), even though the precious metals products were “out of scope for the steel and aluminum tariffs.”
And while Canadian imports of U.S. “metal and non-metallic mineral products” fell 15.8% in March – a very significant decline in its own right – the impact on precious metals was far more dramatic.
“As was the case with exports, imports of unwrought gold, silver and platinum metals (-69.7%) were by far the largest contributor to the decline,” Statistics Canada noted.
Canada’s counter-tariffs were designed to target key U.S. sectors while also minimizing the impact on Canadian businesses.
“Effective March 4, 2025, certain goods imported into Canada and originating in the U.S. are subject to the 25% Canadian surtax,” a Department of Finance official told Kitco News. “As of March 13, 2025, a second list of products became subject to a 25% Canadian surtax.”
The March 4 list included a wide range of precious metals products related to jewelry, such as silver, platinum and palladium, both solid and plated, as well as other gold-plated jewelry products “unwrought or in semi-manufactured forms, or in powder form.” Also included were “Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal” and “Other articles of precious metal or of metal clad with precious metal.”
The March 14 list added several more precious metals product categories that were not related to jewelry. These included solid gold and platinum products – including gold plated with platinum, unwrought or in semi-manufactured forms, or in powder form – as well as waste and scrap of precious metal “of a kind used principally for the recovery of precious metal.”
While the tariff orders stated that the 25% surtax would only apply to “non-monetary” precious metals products, this definition would still include a vast number of coins and other collectibles used for investment purposes, to say nothing of navigating the complexities of precious metals products that fit into multiple categories.
“The process to identify appropriate imports for retaliatory measures was undertaken by the Government of Canada over several months, including extensive consultation with stakeholders, provinces and territories,” the Department of Finance official said. “The goods were identified for a number of reasons, including to put pressure on the U.S., and to limit, to the degree possible, impacts on Canadian industry.”
But the vast quantity of U.S. precious metals exports that pass through Canada as transshipments on their way to other markets – including gold and silver bullion moving by truck, rail and air and through the country’s seaports – will not be affected by the new tariffs.
“Nearly all commercial goods, imported into Canada temporarily and classified as such, are not subject to surtax,” Canada Border Services Agency spokesperson Luke Reimer told Kitco News. “Commercial goods that are temporarily imported into Canada may fall under Tariff Item No. 9993.00.00 and would not be subject to surtax on the condition that the goods are imported into Canada temporarily, are imported in no greater quantity than is reasonable for the use specified, and will be subsequently exported.”
