Canada’s Deputy Prime Minister and Minister of Finance Chrystia Freeland, announced in a release the final list of Chinese-made steel and aluminium products and Chinese-made electric vehicles (EVs) subject to surtax on 1 October 2024.

The federal government announced that Chinese-made steel and aluminium products will be subject to a 25% tariff and a 100% tariff on Chinese-made EVs.

Canadian workers, automobile sector, steel and aluminium industries, and related critical manufacturing supply chains are threatened by unfair competition from Chinese producers, who benefit from China’s intentional, state-directed policy of overcapacity and oversupply, as well as its lack of rigorous labour and environmental standards. That is why the federal government is taking further action to protect Canada’s workers and investments from China’s unfair trade policies.

On 26 August 2024, the federal government first announced the surtax on all Chinese-made electric vehicles (EVs) and imports of steel and aluminium products from China under section 53 of the Customs Tariff.

On 10 September 2024, the government also launched consultations on potential surtaxes to protect critical manufacturing sectors, which remain open for stakeholder comment until 10 October 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.

In the final list issued on 1 October 2024, the government clarified that The surtax will not apply to Chinese goods in transit to Canada on the day this surtax comes into force.