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The Canadian government has begun a 30-day consultation to decide whether to impose a tax surcharge on solar products, semiconductors, batteries and battery parts from China. It recently imposed a 100% surcharge on electric vehicles manufactured in China.
The Canadian government is seeking comments on whether to impose a surcharge on solar products, batteries and battery parts, semiconductors and critical minerals from Chinese producers.
A 30-day consultation period opened on September 10. In a statement posted online, the Canadian government says that Canadian workers, the automotive sector and critical manufacturing supply chains “currently face unfair competition from Chinese producers, who benefit from China’s deliberate, state-directed policy of overcapacity and lack of rigorous labour and environmental standards.”
According to the text, surcharges could protect Canadian workers, safeguard domestic investments in key sectors, prevent trade diversion, ensure a stable and affordable supply of products for critical manufacturing and support Canadas transition to net-zero emissions by 2050.
The latest consultation period follows another that addressed potential policy responses to Chinese trade practices in the electric vehicle sector, with stakeholders supporting a surcharge on electric vehicles. As a result, the Government of Canada announced a 100% surcharge on Chinese-made electric vehicles, effective October 1, and a 25% surcharge on imports of steel and aluminum products from China, effective October 15.
“Our economy needs fair competition in global markets to grow and ensure the prosperity of Canadian workers,” said Deputy Prime Minister and Finance Minister Chrystia Freeland, adding: “If left unchecked, China’s state-directed, intentional overcapacity policy and other non-market practices could lead to an exponential increase in imports, produced with lax labour and environmental standards.”
Freeland said the government is taking steps with its major trading partners to ensure fair competition and protect Canadian workers. |
