Canada Initiates Consultation on Trade Measures Against Chinese Practices

Canada is launching a second 30-day consultation on potential surtaxes in response to trade practices from China. This consultation will take place from September 10, 2024, to October 10, 2024. The Government of Canada has stated that Canadian workers, particularly in the auto sector and related manufacturing supply chains, face unfair competition from Chinese producers. This competition is attributed to China's state-directed policies that create overcapacity and lack rigorous labor and environmental standards.

On August 26, 2024, the Government announced a 100% surtax on all Chinese-made electric vehicles (EVs), effective October 1, 2024, and a 25% surtax on imports of steel and aluminum products from China, effective October 15, 2024. The upcoming consultation will seek input on the potential application of surtaxes on critical mineral products, batteries and parts, solar products, and semiconductors.

The government aims to ensure that Canadian businesses can compete effectively in domestic, North American, and global markets. Additionally, Canada is committed to achieving net-zero emissions by 2050, with investments in critical manufacturing sectors being essential to this goal.