As international trade dynamics continue to evolve, UBC is closely monitoring recent tariff changes between Canada and the United States that may affect the cost and timing of goods purchased for university operations. This message outlines what tariffs are, recent developments, and how UBC is responding.
What is a Tariff?
A tariff is an import tax collected by the Government of Canada on goods entering the country. Tariffs are determined using harmonized system (HS) codes—standardized product categories defined under Canadian law and international trade agreements.
The Canada Border Services Agency (CBSA) determines applicable tariffs at the port of entry—whether by land, sea, air, or road—when goods physically cross into Canada. This determination is based on the inspection of goods and the details provided in the import documentation.
Who Pays the Tariff?
Depending on the purchase arrangement, the responsibility for paying the tariff falls on:
- The Importer of Record (legally responsible party).
- When payment of duties is contractually included in the purchase terms as:
- UBC responsibility – our customs broker (Thompson Ahern), pays the tariff on UBC’s behalf and invoices the university post-clearance
- The vendor or supplier responsibility – the tariffs are usually included in the purchase price. They pay CBSA – usually through their own courier company
- When payment of duties is contractually included in the purchase terms as:
- For Credit Card Purchases or other Non-PO Purchases courier companies like FedEx, UPS, or other couriers, may pay duties, and bill the individual purchaser post-clearance. Note: Shipments under $3,500 are typically cleared automatically. Higher-value shipments may require advance approval but not always.
Recent Trade Developments
Recent political changes in the United States have resulted in changes to the Free Trade Agreements that Canada has historically enjoyed. Tariff escalations have introduced new costs and constraints for cross-border trade with the United States. The timeline of recent events is as follows:
- March 4, 2025 – The United States imposed a 25% tariff on some Canadian imports and an additional 10% on energy exports
- March 4, 2025 – Canada responded with 25% tariffs on 1,256 harmonized code categories of goods originating from the U.S
- March 12, 2025 – The U.S. added a 25% tariff on all Canadian steel and aluminum products
- March 13, 2025 – Canada implemented reciprocal tariffs on U.S. steel, aluminum, and an additional 539 harmonized code goods categories
- April 3, 2025 – The U.S. introduced tariffs on non-compliant CUSMA vehicles. Canada issued reciprocal tariffs in response
UBC’s Response
To adapt to the current trade environment, UBC is taking proactive steps:
- Prioritizing Canadian suppliers where feasible to avoid tariffs
- Strengthening risk assessments when sourcing from the U.S
- Improving procurement practices:
- Reviewing INCOTERMS and supplier obligations
- Requesting Certificates of Origin
- Factoring tariffs into the total cost of ownership
- Exploring alternative sources for high-risk or high-cost items
Some departments have already experienced increased costs due to these changes.
Not all US Purchases are currently subject to tariffs it is important to evaluate each purchase with the information at hand.
What’s Next?
The trade landscape remains uncertain and continues to evolve. Both federal and provincial trade policies may further impact university purchases.
To avoid unexpected costs or delays, we strongly encourage departments to contact Procurement early in the planning process—especially for any purchases involving U.S. suppliers.
Need Support?
Please contact Procurement at ubco.procurement@ubc.ca for any guidance.
Alternatively check Considering buying Canadian? For more information on how you can support purchasing locally.