Canada Announces Measures Against Chinese EVs, Steel

The Government of Canada has announced several measures aimed at addressing what it describes as unfair trade practices by Chinese producers. These measures were detailed by Deputy Prime Minister and Minister of Finance Chrystia Freeland in Halifax on August 26, 2024.

Key actions include:

• A 100% surtax on all Chinese-made electric vehicles (EVs) effective October 1, 2024. This surtax will be in addition to the existing 6.1% Most-Favoured Nation import tariff.
• A 25% surtax on imports of steel and aluminum products from China, effective October 15, 2024. An initial list of goods subject to this surtax has been released for public comment, with the final list to be announced by October 1, 2024.
• A 30-day consultation on other critical sectors such as batteries, semiconductors, solar products, and critical minerals. A consultation notice will be released soon.
• Limiting eligibility for the Incentives for Zero-Emission Vehicles (iZEV), Incentives for Medium and Heavy Duty Zero Emission Vehicles (iMHZEV), and the Zero Emission Vehicle Infrastructure Program (ZEVIP) to products made in countries with free trade agreements with Canada.

The federal government plans to review these measures within a year of their implementation and may extend or supplement them as necessary.

According to the government, these actions are in response to Chinese policies that allegedly create overcapacity and lack rigorous labour and environmental standards, posing a threat to Canadian workers and industries.

The measures aim to protect Canadian jobs and allow domestic industries to compete more effectively in North American and global markets.