The Government of Canada will be imposing a 25% surtax on select imports of steel and aluminum from China effective October 22nd, after unveiling its final list of impacted products on Tuesday.
“These are very important measures,” Deputy Prime Minister and Finance Minister Chrystia Freeland told reporters on October 1st. “These are about being sure that Canadian workers and Canadian industry are competing on a level playing field, that they are not facing unfair competition from Chinese overcapacity.”
These surtaxes will not apply to Chinese goods that are in transit to Canada on the day on which they come into force—October 22, 2024.
The intent of the move was first announced on August 26, 2024 and follows a month of consultations with stakeholders. It also follows the United States, which is imposing its own 25% surtax on selected Chinese steel and aluminum products as of October 15.
Starting on October 1st, Canada’s 100% tariff on all Chinese-made electric vehicles (EVs), including some hybrids, trucks and buses, also came into effect. Those measures were first announced on August 26th as well.
Following Canada’s EV tariffs announcement in August, China announced an anti-dumping investigation into Canadian canola imports, escalating a trade dispute between the two countries.
Recent consultations with Canadian stakeholders confirmed that exceptional measures are required to address the extraordinary threat from Chinese producers. However, the government also heard concerns from certain stakeholders about challenges with adjusting supply chains before the measures enter into force. To ensure Canadian industry has time to adjust supply chains, the government intends to implement a framework to consider requests for tariff relief. Potential factors that may be included in the framework are situations of short supply, requiring additional time to switch to alternate sources of supply, such as certification requirements, and other exceptional circumstances. Further details on the remission order framework, including the application process and eligibility criteria for relief, will be released in advance of that date. Requests for remission or inquiries on the remission process can be directed to remissions-remises@fin.gc.ca.
The federal government intends to review these measures within a period of one year from their entry into force. Tuesday’s actions may be extended for a further period of time and supplemented by additional measures, as appropriate.
Again, if you would like to confirm whether any aluminum or steel products that your company is importing from China is impacted, click here to review the final list. If the HS code is not on the list, then that product should not be subject to the new 25% surtax.
Source: Government of Canada
Source: CTV News
