The federal government has confirmed that its 100 per cent surtax on Chinese-made electric vehicles — those imported into Canada — now applies to EVs and certain hybrid passenger automobiles, trucks, buses, and delivery vans. They also announced the final list of steel and aluminum products subject to a 25 per cent tariff.
The surtax on EVs came into effect on Oct. 1 and is in addition to the Most-Favoured Nation import tariff of 6.1 per cent, while the surtax on steel and aluminum products will take effect Oct. 22. The government also launched consultations on potential surtaxes to protect critical manufacturing sectors. That remains open for comment until Oct. 10.
“This action, which represents yet another step in the right direction, will help foster the Canadian clean technology and electric vehicle supply chains — from mining critical minerals to manufacturing batteries and vehicles right here at home,” said Jonathan Wilkinson, Minister of Energy and Natural Resources, in a statement.
He also noted that, as countries around the globe increasingly look for a reliable supplier of these products, “Canadian workers and businesses will be front and centre in seizing the economic opportunity this demand presents.”
Chrystia Freeland, Deputy Prime Minister and Minister of Finance, who announced the list of steel and aluminum products subject to the 25 per cent surtax, said the tariffs are meant to protect Canadian workers and businesses from China’s “intentional and state-directed policy of overcapacity and oversupply.” She added that the situation China has created is undermining Canada’s ability to compete in domestic and global markets.
Mary Ng, Minister of Export Promotion, International Trade and Economic Development, said in a statement that China’s “non-market policies and practices” create an unfair playing field for businesses.
