Posted on 22 Oct 2024
The government of Canada will allow businesses to avoid the newly imposed tariff on China-made EVs and steel “under specific and exceptional circumstances.”
Electric vehicles manufactured in China are subject to a 100% surtax as of 1 October, while a 25% surtax on imported steel is taking effect on 22 October.
Mirroring similar tariffs enforced by the US, Ottawa hopes these measures will “level the playing field and protect Canada’s workers and businesses from China’s unfair trade policies,” such as “poor labour standards, a lack of environmental protections, and trade policies supporting oversupply.”
China’s annual EV exports ballooned to $47.2 billion last year from $0.2 billion in 2018. The country is also the world’s largest steelmaker with over 1 billion tonnes produced in 2023, the Canadian government notes.
Now, Canadian companies will be able to apply for remission of the new duty increases, providing relief from paying them or receiving a refund if they have already been paid, Kallanish reports.
This will apply when goods used as inputs or their substitutes cannot be sourced either domestically or reasonably from non-Chinese sources, or where contracts agreed upon before 26 August require Canadian businesses to purchase Chinese goods for a certain period.
Other exceptional circumstances that can cause “significant adverse impacts” on the Canadian economy will be assessed on a case-by-case basis.
Canada is also considering further tariffs on batteries, battery parts, and critical minerals, for which a public consultation closed earlier this month. The remission may apply to the surtaxes currently under consideration.
Source:Kallanish
