Ottawa, Ontario - Department of Finance Canada
Canadian workers, the auto sector, and related critical manufacturing supply chains currently face unfair competition from Chinese producers, who benefit from China's intentional, state-directed policy of overcapacity and lack of rigorous labour and environmental standards. This unfair competition threatens Canadian workers and businesses, and those around the world, and undermines Canada's long term economic prosperity.
The federal government has taken action to level the playing field for Canadian workers across Canada's EV industry, and is considering further measures to protect related critical manufacturing sectors, to ensure Canadian businesses can compete in domestic, North American, and global markets.
On August 26, 2024, following a first 30-day consultation, the Government of Canada announced it will be implementing a 100 per cent surtax on all Chinese-made EVs, effective October 1, 2024, and a 25 per cent surtax on imports of steel and aluminum products from China, effective October 15, 2024. The same day, the government also announced it would launch a second 30-day consultation on related critical manufacturing sectors, including batteries and battery parts, semiconductors, solar products, and critical minerals.
To that end, Canada is today launching a second 30-day consultation, from September 10, 2024, to October 10, 2024, on potential surtaxes in response to unfair Chinese trade practices. Specifically, the Government of Canada is seeking views on the potential application of a surtax on critical mineral products, batteries and parts, solar products, and semiconductors, as well as the timing of the coming into force of any potential measures. These measures would build upon those announced on August 26.
Canada is committed to reaching net-zero emissions by 2050. Investments in critical manufacturing sectors, such as batteries, semiconductors, solar products, and critical minerals are essential to achieving this goal.
