Canada Implements Tariffs on Chinese Imports to Protect Domestic Industries

The Government of Canada has announced new tariffs aimed at addressing competition from Chinese producers in key sectors. Effective October 1, 2024, a 100 percent surtax will be applied to all Chinese-made electric vehicles (EVs). This includes electric and certain hybrid passenger automobiles, trucks, buses, and delivery vans. Additionally, a 25 percent surtax on imports of steel and aluminum products from China will take effect on October 22, 2024.

These measures are part of the government's response to what it describes as unfair competition from Chinese manufacturers, which allegedly benefit from state-directed policies that create overcapacity and lack rigorous labor and environmental standards. The government has stated that these actions aim to protect Canadian workers and businesses in the auto, steel, and aluminum sectors.

The announcement follows consultations with stakeholders, which indicated a need for exceptional measures to counter the perceived threat from Chinese producers. The government plans to implement a framework to consider requests for tariff relief to allow Canadian industries time to adjust their supply chains before the surtaxes come into effect.

The government will review these measures within a year of their implementation, with the possibility of extending them or adding further actions as necessary. Stakeholders have until October 10, 2024, to provide feedback on the proposed surtaxes during an ongoing consultation period.