The federal government says businesses can now request remission from newly announced tariffs on Chinese electric vehicles and steel and aluminum products.
The federal government has announced that businesses can now apply for relief from the newly imposed tariffs on Chinese electric vehicles (EVs) and steel and aluminum products.
According to officials, this measure is intended to help Canadian industries navigate the challenges of adjusting their supply chains. Prime Minister Justin Trudeau revealed on August 26 that a 100% tariff would be applied to Chinese EVs, along with a 25% tariff on Chinese steel and aluminum.
The tariff on electric vehicles came into effect on October 1, while the steel and aluminum tariffs will begin on October 22.
Businesses that depend on these imported products and are unable to find alternative sources, or those bound by contracts made before the tariffs were announced, may request exemptions. The government will also consider exceptional cases when reviewing these requests.
Finance Minister Chrystia Freeland has criticized China for what she described as unfair trade practices and poor environmental and labor standards, which she claims allow Chinese products to be priced and dumped in global markets at the expense of workers and the environment.
The tariffs followed a month-long consultation process required by Canadian law. The decision aligns with similar actions taken by the U.S. earlier this year, although American tariffs have yet to be enforced. Canada faced pressure from industries such as automakers and steel and aluminum producers to follow suit.
In response, China filed a complaint with the World Trade Organization and launched an investigation into alleged dumping of Canadian canola, pledging to protect the interests of its businesses.
