On October 1, the day on which a new 100% Canadian tax took effect on Chinese electric vehicles, Canada’s Minister of Finance, Chrystia Freeland, announced the final list of steel and aluminum products from China that will be subject to the 25 per cent surtax, effective October 22, 2024.
This surtax will not apply to Chinese goods that are in transit to Canada on the day on which they come into force-October 22, 2024.
Recent consultations with Canadian stakeholders confirmed that exceptional measures are required to address the extraordinary threat from Chinese producers.
However, the government also heard concerns from certain stakeholders about challenges with adjusting supply chains before the measures enter into force. To ensure Canadian industry has time to adjust supply chains, the government intends to implement a framework to consider requests for tariff relief.
Potential factors that may be included in the framework are situations of short supply, requiring additional time to switch to alternate sources of supply, such as certification requirements, and other exceptional circumstances. Further details on the remission order framework, including the application process and eligibility criteria for relief, will be released soon.
Links:
– Final list of steel and aluminum products from China that will be subject to a 25 per cent surtax