Canada implements measures against unfair Chinese trade practices

The Government of Canada has recently announced the imposition of Surtax on electric vehicles and certain steel and aluminum goods from China.

Recent consultations with stakeholders confirmed that exceptional measures are required to address the unfair competition that Canadas auto workers and the auto sector are facing from Chinese producers, who benefit from unfair, non-market policies and practices.

The following series of measures are being implemented to level the playing field for Canada’s EV industry and steel and aluminum producers:

  • The Government of Canada intends to implement a 100% surtax on imports of Chinese-made EVs, effective October 1, 2024. A list of the subject products and their HS classifications are available here.
  • The federal government intends to apply a 25% surtax on imports of steel and aluminum products from China, effective October 15, 2024. An initial list of products and their HS classifications is being released today for public comment. The final list of goods subject to the surtaxes will be announced by October 1, 2024.
  • The Government of Canada will launch a second 30-day consultation concerning other sectors critical to Canada’s future prosperity, including batteries and battery parts, semiconductors, solar products, and critical minerals.
  • The federal government is announcing its intention to limit eligibility for the Incentives for various Zero Emission Vehicles programs to products made in countries which have a free trade agreement with Canada.

The government intends to review these measures within one year of their entry into force, at which time the actions may be extended for a further period of time and additional measures implemented.

Comments and feedback are welcome and should be provided no later than September 20, 2024, as detailed in the Notice of intent .

Email your comments and feedback to [email protected], including “Steel and aluminum surtaxes” in the subject line, or by mail to:

International Trade Policy Division (Steel and Aluminum Surtaxes)

Department of Finance
90 Elgin Street, 14th Floor
Ottawa, Ontario K1A 0G5

Please refer to the Department of Finance news release for additional details.