The Impact Of US-Canada Trade War On North Carolina

Sole proprietors may opt to apply for NC Tax ID to help protect the privacy of the Social Security Number (SSN). The 9-digit unique Tax ID is issued by IRS to businesses for the administration of taxes like Income Tax Withholding, Sales and Use Tax and Privilege License. The Tax ID will be required when a business remits the withheld taxes from employee’s wages to the IRS.

Canada is the top international trading partner of North Carolina. Last year, North Carolina exported $6.6 billion worth of good to Canada. This is more than the value of the goods that were exported to Mexico and China. Aside from being a trade partner, 247,500 jobs in North Carolina were made possible due to business with Canada.

Free trade between the United and Canada started in the late 1980’s through an agreement that predates the North American Free Trade Agreement (NAFTA). Although the open trade between the two countries has been taken for granted by many people, it has been longer than what most people think.

However, the relationship between the two countries have turned “sour” after the American President tweeted that the Canadian Prime Minister is “dishonest and weak” after the summit of world leaders that discussed trade agreements. What is the reason for the disagreement?

The Trump administration decided to enact taxes of 25% on steel and 10% on aluminum that are imported from Canada. Initially, everyone thought that Canada will be exempted from the tariffs on steel and aluminum but then it was applied to Canada, Mexico and China. The basis of the decision is the assumption that imports from the 3 countries is weakening the ability of the United States to build arms and equipment for the military.

The retaliation of Canada to impose tariffs on a long list of exports will hurt North Carolina exporters and businesses because they are trading partners. Trade must be balanced and mutually beneficial.

There are many unique features and benefits that can be gained when you seek assistance from third party designees when applying for NC Tax ID for your business. The IRS website is so large that it will take you several minutes to navigate the site and locate the application form for Tax ID.