Posted on 25 Oct 2024
The Canadian federal government announced on October 18 that businesses can now request exemptions from surtaxes on electric vehicles (EVs), steel, and aluminum products imported from China, according to an official statement.
The country's Ministry of Finance stated that these remissions will offer relief from surtaxes or provide refunds for those already paid, providing its domestic industry more time to adjust supply chains.
The exemption also applies to potential future surtaxes on critical manufacturing sector products. The government will assess the appropriate duration for these remissions.
Canada has imposed a 100% surtax on China-made EVs since October 1, and a 25% surtax on steel and aluminum products from China, effective October 22. According to the Friday statement, under "specific and exceptional circumstances," the Canadian government will allow businesses to bypass these tariffs.
The decision to offer relief recognizes the difficulties Canadian industries may face when realigning their supply chains. For example, requests for remission will be considered when goods used as inputs, or suitable substitutes, cannot be sourced either domestically or from non-Chinese suppliers.
Canada's move aligns with similar US tariffs aimed at "leveling the playing field" and protecting Canadian workers and businesses from China's trade practices, which Ottawa criticizes for poor labor standards, weak environmental protections, and policies that contribute to market oversupply.
The statement pointed out that China's annual EV exports reached $47.2 billion in 2023, marking a sharp surge as compared to $0.2 billion five years before. And as the world's largest steelmaker, China produced over 1 billion tonnes of crude steel last year.
Source:Mysteel Global
