We wanted to update you on the latest initiatives by the Canadian government to safeguard our domestic industries against unfair Chinese trade practices.
Support for Canadian Jobs in Key Industries
Canada’s auto manufacturing sector supports over 125,000 well-paying jobs, many of which are unionized. Our electric vehicle (EV) supply chain potential is globally ranked first. Similarly, Canada’s steel and aluminum sectors employ more than 130,000 Canadians.
Challenges from Unfair Chinese Competition
Canadian auto workers and the overall auto sector face severe competition from Chinese producers benefitting from unfair, non-market practices. Chinese policies of overcapacity and inadequate labor and environmental standards jeopardize the EV industry worldwide and threaten Canada’s economic future. Stakeholder consultations underscore the need for exceptional measures to counter these threats.
New Protective Measures Announced
The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, has unveiled a series of robust measures to ensure a fair competitive environment for Canadian workers and industries.
1. 100% Surtax on Chinese-Made EVs: Effective October 1, 2024, the Government of Canada will implement a 100 per cent surtax on all Chinese-made EVs. This includes electric and certain hybrid passenger automobiles, trucks, buses, and delivery vans. This surtax is in addition to the existing 6.1 per cent Most-Favoured Nation import tariff on Chinese-produced EVs.
2. 25% Surtax on Chinese Steel and Aluminum Imports: A 25 per cent surtax on imports of steel and aluminum products from China will be effective October 15, 2024. This measure aims to protect Canadian workers from China’s unfair trade policies and to prevent trade diversion due to recent global trade actions.
These measures are designed to protect Canada’s industries and ensure that our workers have a level playing field in both domestic and global markets. We will continue to monitor the situation closely and provide updates as necessary.
>> Read more from the Government of Canada: Canada implementing measures to protect Canadian workers and key economic sectors from unfair Chinese trade practices
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