Tariff Transparency and Price Certainty for Control GMC Customers
U.S. Tariff Update – August 22, 2026
Tariff Certainty for Control GMC Customers
The U.S. federal government recently imposed a 50% tariff on certain Canadian exports, effective August 22, 2026, under Section 338 of the Tariff Act of 1930.
The Canadian and U.S. governments continue to work toward a stable, mutually beneficial long-term trade relationship. In the meantime, the tariff environment remains complex and may continue to evolve.
Control GMC helps food and beverage manufacturers in the United States and Canada improve productivity and safely and efficiently package the food products consumed every day. Increasing the cost of automation—or limiting manufacturers’ access to competitive equipment and technology—ultimately increases costs throughout the food supply chain.
In this environment, Control GMC’s objective is to provide our customers with tariff transparency and, wherever possible, price certainty.
Our No Surprise Tariff Protection Clause was created to protect customers from unexpected tariff increases after they commit to purchasing a machine.
For new projects, we will determine the expected tariff treatment during the quotation process based on the equipment’s function, customs classification, origin, material content and other applicable customs rules.
You will know the expected tariff exposure before making your purchasing decision—not when your machine reaches the border.
New Control GMC Machines
Control GMC machines are engineered and manufactured in Canada. Because every machine is custom-engineered for a specific application, its U.S. tariff treatment must be evaluated individually.
Depending on the specific machine, its customs classification, origin, material content and applicable rules, U.S. import treatment may include:
- 0% duty treatment under USMCA, where applicable;
- Section 232, including provisions applicable to certain products containing steel, aluminum or other covered metals; or
- Section 338, where applicable.
The expected tariff treatment and any tariff amount payable by the customer will be clearly identified in our quotation before the Purchase Order is issued.
Our No Surprise Tariff Protection
Once your Purchase Order is issued, the tariff amount stated in our quotation becomes the maximum tariff amount you will pay, subject to the terms of our No Surprise Tariff Protection Clause.
If applicable U.S. tariffs increase between your Purchase Order and delivery, Control GMC will not pass the covered increase on to you.
If the applicable tariff decreases before your machine is imported, you will benefit from the lower applicable tariff.
Your quoted tariff is a maximum—not a minimum.
How Are Tariffs Invoiced?
For new machines, tariff invoicing is handled separately from the underlying equipment price.
The machine is invoiced at the equipment price established in the quotation and Purchase Order. Any applicable tariff is identified separately based on the tariff treatment established for the project.
This approach provides transparency between the value of the equipment and any U.S. import duties associated with it.
Under our No Surprise Tariff Protection Clause, the customer will not be charged more than the protected tariff amount established in the applicable quotation and Purchase Order.
What About Existing Machine Orders?
Customers who placed Purchase Orders under the previous tariff environment remain protected by our No Surprise Tariff Protection Clause.
For Purchase Orders issued on or before August 21, 2026, where the applicable Control GMC quotation established a 0% tariff obligation to the customer, Control GMC will honor that commitment.
If the equipment becomes subject to an applicable U.S. tariff before delivery, the customer will not be charged that additional tariff, provided the order is covered by the applicable No Surprise Tariff Protection Clause.
For these protected orders, your tariff cost remains 0%, even if the tariff environment changed after you placed your order.
Spare Parts
Parts Sourced Outside Canada
Many replacement components supplied by Control GMC are manufactured outside Canada.
The applicable U.S. tariff treatment of these parts generally depends on the actual country of origin and customs classification of the part, rather than simply the country from which Control GMC ships it.
A foreign-origin component stocked by Control GMC in Canada and subsequently shipped to a U.S. customer does not automatically become a Canadian-origin product simply because it is shipped from Canada.
The part remains subject to the U.S. tariff treatment applicable to its country of origin, customs classification and any other applicable tariff provisions.
Because these rules can vary significantly from one component to another, Control GMC can provide an expected tariff assessment on request before an order is placed.
Parts Manufactured by Control GMC in Canada
Proprietary replacement parts manufactured by Control GMC in Canada are evaluated according to their applicable customs classification, origin, composition and other applicable rules.
Depending on the part, it may qualify for:
- 0% duty treatment under USMCA, where applicable;
- Section 232 treatment, where applicable;
- Section 338 treatment, where applicable; or
- another applicable U.S. tariff provision.
Control GMC will document the shipment and use commercially reasonable efforts to ensure that each part receives the appropriate tariff treatment under applicable U.S. customs rules.
How Are Tariffs on Spare Parts Charged?
Because individual replacement parts may have different countries of origin and customs classifications, Control GMC can provide an estimated tariff treatment upon request.
However, the final tariff assessment remains subject to applicable U.S. customs laws and the determination made at importation.
Where Control GMC pays an import tariff on the customer’s behalf, the tariff will be passed through to the customer at cost, without markup.
Our objective is simple: we will work to obtain the appropriate tariff treatment, document it properly and provide transparency regarding any tariff charged.
What About Spare Parts Already Ordered?
For qualifying Canadian-origin spare-part orders placed on or before August 21, 2026 and specifically covered by our No Surprise Tariff Protection commitment, Control GMC will honor the tariff treatment established in the applicable quotation and Purchase Order.
For foreign-origin replacement parts, applicable duties continue to depend on the part’s actual country of origin, customs classification and other applicable U.S. customs rules.
How Can Control GMC Provide Tariff Protection in a Volatile Environment?
Control GMC closely monitors U.S.–Canada trade developments and continuously reviews the customs classification and tariff treatment applicable to our equipment and parts.
Where eligible, we are also making use of sector-specific support measures and other tools made available by the Government of Canada to Canadian manufacturers affected by exceptional U.S. tariffs.
Combined with our internal cost-management initiatives, these measures help us provide customers with a more stable and predictable purchasing environment despite ongoing changes in U.S. trade policy.
Our objective is simple: tariff uncertainty should not become an unexpected cost at the end of your machine project.
Tariff FAQ
Tariff treatment is determined on a case-by-case basis.
Depending on the machine’s customs classification, function, origin, material content and applicable rules, a Control GMC machine may qualify for 0% USMCA treatment or may be subject to Section 232, Section 338 or another applicable U.S. tariff provision.
The expected treatment is reviewed during the quotation process.
Control GMC will review the expected tariff treatment as part of the quotation process.
Where a tariff is expected to apply, the tariff assumption and maximum customer tariff cost will be clearly identified before the Purchase Order is issued.
Under our No Surprise Tariff Protection Clause, the tariff amount established in the applicable quotation is the maximum covered tariff amount the customer will pay.
If covered U.S. tariffs increase after the Purchase Order, Control GMC absorbs the additional covered amount.
If the applicable tariff decreases before importation, the customer benefits from the lower applicable tariff.
The protection works in your favor: your quoted tariff is the maximum, while a lower tariff at delivery is passed on to you.
No, if your order is covered by our No Surprise Tariff Protection Clause.
For Purchase Orders issued on or before August 21, 2026 where the applicable Control GMC quotation established a 0% tariff obligation to the customer, Control GMC will honor that commitment.
You will not receive an unexpected tariff surcharge simply because the U.S. tariff environment changed after your order was placed.
Not necessarily.
The applicable tariff treatment generally depends on the actual country of origin and customs classification of the part, rather than simply the location from which Control GMC ships it.
A foreign-origin component stocked in Canada and subsequently shipped to a U.S. customer does not automatically become Canadian-origin merchandise.
We can provide an expected tariff assessment upon request, based on the information available regarding the part’s country of origin, customs classification and applicable tariff provisions.
However, the final tariff assessment remains subject to applicable U.S. customs rules and the determination made at importation.
Where Control GMC pays the tariff on the customer’s behalf, we pass that tariff through at cost, without markup.
Parts manufactured by Control GMC in Canada are evaluated according to their applicable customs classification, origin, composition and other applicable rules.
They may qualify for 0% USMCA treatment or may be subject to Section 232, Section 338 or another applicable U.S. tariff provision.
No.
The clause provides tariff cost certainty, not necessarily a 0% tariff.
For new machine orders, the expected tariff treatment will be identified during the quotation process. Once the Purchase Order is issued, the applicable tariff amount identified in the quotation becomes the customer’s protected maximum, subject to the terms of the No Surprise Tariff Protection Clause.
If the applicable tariff is lower when the machine is imported, the customer benefits from the lower rate.
You know your maximum tariff exposure before you order—not when the equipment reaches the border.
Import tariffs apply to imported goods. Separately quoted installation, commissioning, training and technical-support services are handled separately from the customs value and tariff treatment of the imported equipment, subject to applicable customs rules.
Have a Machine or Spare-Part Order in Progress?
Tariff treatment can vary depending on the specific equipment or component.
Contact Control GMC with your quotation, Purchase Order or part number, and our team will review the expected tariff treatment applicable to your order.
Our Commitment
Transparent tariff treatment. Predictable machine pricing. No last-minute surprises.
Control GMC will continue to monitor the evolving U.S.–Canada tariff environment while helping our customers understand the tariff treatment applicable to their equipment before making a purchasing decision.
