ottawa –
The federal government has announced that businesses can now request relief from newly announced tariffs on Chinese electric vehicles and steel and aluminum products.
Ottawa said the relief package is aimed at offsetting challenges that Canadian industry may face in adjusting supply chains.
Prime Minister Justin Trudeau announced on August 26 that Canada would impose a 100% tariff on Chinese-made EVs and a 25% tariff on steel and aluminum.
China’s tariffs on EVs will go into effect on October 1st, and tariffs on steel and aluminum will take effect on October 22nd.
The federal government will consider requests if a company relies on imported products and cannot source them from another country, faces contractual obligations made before the tariffs were announced, or in other exceptional circumstances. It is said that
Finance Minister Chrystia Freeland accused China of unfair trade practices and “terrible” environmental and labor standards, saying China charges unreasonable prices for products and dumps them on the market, causing huge harm to the environment and workers. He said it was a sacrifice.
The tariffs were announced after a month-long consultation process required by Canadian law.
The Liberal government’s move follows similar tariffs announced by the United States in the spring, but which have not yet taken effect. Canada was under intense pressure from industry groups, including automakers and steel and aluminum mills, to match U.S. tariffs.
Last month, China launched a lawsuit against Canada at the World Trade Organization over tariffs, announced an anti-dumping investigation into Canadian canola imports, and vowed to protect “the legitimate rights and interests of Chinese companies.”
This report by The Canadian Press was first published Oct. 18, 2024.
