Canada’s tariffs on Chinese steel, aluminum go into effect

Canada’s heightened tariffs on Chinese steel and aluminum exports went into effect Tuesday, with Canadian industry groups welcoming the new restrictions.

In August, Prime Minister Justin Trudeau announced that the federal government will be introducing a 100 per cent tariff on Chinese-made electric vehicles and a 25 per cent tariff on Chinese steel and aluminum.

The surtax on Chinese EVs, which includes electric and certain hybrid passenger automobiles, trucks, buses and delivery vans, had already gone into effect on Oct. 1.

The Canadian Steel Producers Association (CSPA) and the Aluminium Association of Canada released a joint statement Tuesday morning, welcoming the new steel and aluminum tariffs.

The statement said this has come after “a long campaign advocating for fair trade and a level playing field in the steel and aluminium markets.”

5:23 The impact of Canada’s new tariffs on Chinese EV’s

The statement said the organizations were glad to see Canada aligning with U.S. trade policy on tariffs on China.

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

Sign up for breaking National newsletter Sign Up

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

The announcement brings Canada in line with recent U.S. trade policy changes. President Joe Biden announced in mid-May that he was hiking tariffs on Chinese EVs from 25 per cent to 100 per cent this year.

Last week, the Finance Ministry said Canadian firms can request a temporary remission of tariffs on the imports of Chinese electric vehicles, steel and aluminum products.

The ministry said in a statement that relief would be granted under specific and exceptional circumstances. The measure is designed to help firms adjust their supply chains to cope with the new tariffs, it said in a statement.

“To ensure that Canadian industry has sufficient time to adjust supply chains, remission will provide relief … under specific and exceptional circumstances,” the ministry said.

“The federal government will consider the appropriate duration of remission, with intent to provide it on a transitional basis only in most cases.”

Remission would be considered in some following cases, the government has said:

• Situations where goods used as inputs, or substitutes for those goods, cannot be sourced either domestically or reasonably from non-Chinese sources.
• Where there are contractual requirements, existing prior to Aug. 26, 2024, requiring businesses to purchase Chinese inputs into their products or projects for a specified period of time.
• Other exceptional circumstances, on a case-by-case basis, that could have significant adverse impacts on the economy.

Remission will not be granted for goods intended for resale in the same condition to the United States.

— with files from Reuters