Canada will impose surtaxes on certain steel, aluminum, and electric vehicles (EVs) from China to protect Canadian industries and workers from unfair trade practices.
Who will be impacted?
Companies that deal in the Electric Vehicle (EV) sector and importers of specific steel and aluminum commodities from China.
Surtax on Electric Vehicles Made in China
A 100% surtax will be imposed on Chinese-made EVs effective October 1, 2024.
Why is this happening?
Canadian auto workers and the auto sector currently face unfair competition from Chinese producers, who benefit from unfair, non-market policies and practices
China’s intentional, state-directed policy of overcapacity and lack of rigorous labour and environmental standards threaten workers and businesses in the EV industry around the world and undermines Canada’s long term economic prosperity
What goods will be impacted?
Electric and certain hybrid passenger automobiles, trucks, buses, and delivery vans
The initial list of HS Classifications that will be subject to the surtax can be found here: Surtax on Chinese-made Electric Vehicles
Steel and Aluminum
A 25% surtax will apply to specific products from China effective October 15, 2024
Why is this happening?
To protect Canada's workers and investments in these sectors from China's unfair trade policies
Canada’s trading partners such as the United States and Mexico have identified similar concerns with Chinese policies and practices
To prevent trade diversion resulting from recent actions taken by Canada’s trading partners
What commodities will be impacted?
The preliminary list of HS Classifications that will be subject to the surtax can be found in this link: Surtax on imports of steel and aluminum products from China - Canada.ca
The Government of Canada will announce the final list of subject goods on October 1, 2024
The surtaxes will not apply to Chinese origin goods that are in transit to Canada on the day for which these surtaxes come into force.
These surtaxes will be applied in addition to the existing Most-Favoured Nation import tariffs.
Refer to the following links for additional information:
Our team Technical Consultants are following this very closely and will be communicating updates as they become available. If you have any questions, please contact us at [email protected]