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Ohio As A Possible Casualty Of A Trade War Between Canada And The US

A business that plans to hire employees is required to apply for Ohio Tax ID number for tax identification purposes. It is important to note that once IRS issues the business with the 9-digit unique number, it will never expire or be reissued. It is very likely that your business will grow in the future and having an EIN makes you compliant early on.

However, in case a trade war erupts between the United States and Canada, the unique position of Ohio makes it a likely victim of the situation. Canada is an important trade partner of Canada. At least $19billion worth of products that range from auto parts to furniture and soap were exported to Canada last year. The second largest export partner of Ohio is Mexico that received $6.5 million worth of Ohio products last year.

Last May 31, the Trump administration announced that it will implement 25% tariff on steel and 10% tariff on aluminum that comes from Canada. Almost immediately, Canadian Prime Minister Justin Trudeau announced a series of retaliatory measures. To take effect on July 1 are tariffs on steel, aluminum and household products that range from shaving cream to toilet paper and inflatable boats that are imported from the US.

According to a statement from Honda regarding the possible impact of the trade war, they are still in the process of assessing any possible impact to their company. They are also planning to mitigate the situation so that customers, associates, suppliers and dealers will not feel the adverse effects.

Canada and the US are close allies and nobody imagined a trade war to happen between the two countries. However, the Trump administration is concerned about the US steel industry. At first Canada was exempted from tariffs including Mexico and the European Union but tougher policies have to be developed in the global trade system.

Many sole proprietor ships opt to use their social security number instead of the Ohio Tax ID number on official documents. However, the social security number is personal while the EIN is for business purposes. EIN is less sensitive than SSN that can be stolen for fraudulent purposes.