Consultations on potential surtaxes in response to unfair Chinese trade practices in critical manufacturing sectors
Current status: Closed
In response to the exceptional threats posed by Chinese policies and practices in critical manufacturing sectors, the federal government held consultations, from September 10, 2024, to October 10, 2024, on potential surtaxes under section 53 of the Customs Tariff.
These consultations sought input on potential measures to protect Canada's workers, supply chains, and investments in critical manufacturing sectors—such as batteries and battery parts, semiconductors, solar panels, critical minerals, and clean technology—from China's unfair trade policies and to prevent trade diversion resulting from recent actions taken by Canadian trading partners. Thank you to everyone who participated.
These consultations build on the federal government's action to protect workers and critical industries against unfair Chinese competition, which includes a 100 per cent surtax on Chinese-made electric vehicles, which came into effect on October 1, 2024, and a 25 per cent surtax on imports of steel and aluminum products from China, effective October 22, 2024.
Feedback Sought
This consultation sought feedback on:
- The possibility of imposing a surtax on products in the following sectors when imported from China:
- Batteries and battery parts;
- Semiconductors;
- Solar panels; and,
- Critical minerals.
- The scope of tariff lines covered, the rate of a surtax, and the coming into force date, for goods in the above sectors when imported from China; and,
- Information on Chinese policies and practices accelerating Chinese exports or distorting supply chains in these critical sectors.
What's next?
The government is reviewing feedback from Canadians and stakeholders to help inform decisions about the potential imposition of proposed surtaxes, including the scope of product coverage. Potential surtaxes would be applied under the authority of section 53 of the Customs Tariff, which provides for the application of trade measures (including surtaxes) to respond to acts, policies, or practices of other countries that adversely affect Canada's trade interests.
While this formal consultation has now concluded, Canadians are welcome to share their ideas and comments with the Department of Finance at any time.
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