Canada is taking a firm stand against what it claims are unfair Chinese trade practices, with tariffs of its own
It has proposed to impose surtaxes on Chinese imports of critical manufacturing sectors, including solar panels
The government is seeking stakeholder feedback via a month-long consultation before imposing the same
The Canadian Ministry of Finance has launched a 30-day consultation to seek views on imposing potential surtaxes on imports of critical manufacturing sectors, including solar products from China, calling it the country’s response to unfair Chinese trade practices.
Along with solar products, the consultation also includes critical mineral products, batteries and parts, solar products, and semiconductors.
The consultation is open from September 10, 2024 to October 10, 2024. Details are available on the government’s website.
This follows the government’s 1st consultation for 30 days launched on August 26, 2024, post which it announced plans to implement a 100% surtax on all Chinese-made electric vehicles (EV), from October 1, 2024. Surtaxes will also be imposed on steel and aluminum product imports from China starting October 15, 2024.
The ministry said it is committed to reaching net-zero emissions by 2050 for which it plans to invest over CAD 160 billion ($117.66 billion). For this, it sees investments in critical manufacturing sectors such as solar products, batteries, semiconductors, and other critical minerals as essential to achieving this goal.
“Our economy needs fair competition in global markets to grow and ensure Canadian workers prosper. If left unchecked, China’s intentional, state-directed policy of overcapacity and other non-market practices could lead to an exponential surge of imports, produced with weak labour and environmental standards,” said Canada’s Deputy Prime Minister and Minister of Finance, Chrystia Freeland.
She added, “This would undermine the ability of Canada’s EV industry and related critical manufacturing sectors to compete at home and abroad. That is why we are acting—in tandem with our key trading partners—to level the playing field and protect Canadian workers.”
Canada’s neighbor the US has already raised the tariff quota on imported solar cells under Section 201 and is set to increase tariffs on Chinese EVs, batteries, semiconductors, and solar cells under Section 301 (see US Government To Increase Tariffs On Imported Solar Cells).
Earlier in 2023, the Canadian government also announced the Clean Electricity Investment Tax Credit to support the clean energy industry under its Budget 2023, akin to the Inflation Reduction Act of the US (see Canada Comes Out With Its own ‘IRA’).