Canada to slap tariff on Chinese steel, aluminum and EVs come October

Several new tariffs will take effect later this year, aiming to shield Canada’s steel, aluminum, and electric vehicle sectors from an encroaching oversupply of Chinese-made products.

Prime Minister Justin Trudeau laid out a framework at the federal cabinet retreat on Monday, saying his government plans to increase import taxes on Chinese-made EVs by 6.1 per cent.

The move would bring the total tax to 106.1 per cent and comes into effect on Oct. 1.

Alongside the coming tariff, Trudeau announced that a tax on Chinese-made steel and aluminum products would also be increased by 25 per cent, on Oct. 15.

Earlier this year, U.S. President Joe Biden unveiled a similar plan that would have put a 100 per cent tariff on Chinese-made EVs, however delays have pushed the move back from its previous date of Aug. 1 to September.

“The reality is China has an intentional state-directed policy of overcapacity and oversupply designed to cripple our own industries,” Finance Minister Chrystia Freeland said.

“We simply will not allow that to happen to our EV sector, which is showing such promise and in which we have invested so effectively.”

Alongside the ongoing surtaxes, future tariffs, and other trade remedies that Canada is taking to shore up its EV industry from China’s predatorial trade, the federal government says it will also limit the amount of rebates and tax incentives to products made only in countries that have negotiated free trade agreements with Canada.