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The Canadian government has launched a 30-day consultation to determine whether to impose a surtax on solar products, semiconductors, batteries, and battery parts from China. It recently slapped a 100% surtax on Chinese-made electric vehicles.
The government of Canada is seeking views on imposing a surtax on solar products, batteries and battery parts, semiconductors, and critical minerals from Chinese producers.
A 30-day consultation period opened on Sept. 10. The Canadian government said in an online statement that Canadian workers, the automotive sector, and related critical manufacturing supply chains “currently face unfair competition from Chinese producers, who benefit from China’s intentional, state-directed policy of overcapacity and lack of rigorous labor and environmental standards.”
It said surtaxes could protect Canadian workers, safeguard national investments in key sectors, prevent trade diversion, ensure a stable and affordable supply of products for critical manufacturing, and support Canada’s transition to net-zero emissions by 2050.
The latest consultation period follows another one that covered potential policy responses to Chinese trade practices in the electric-vehicle sector, with stakeholders saying that they would back a surtax on EVs. As a result, the government of Canada announced a 100% surtax on Chinese-made EVs, effective Oct. 1, and a 25% surtax on imports of steel and aluminum products from China, effective Oct. 15.
“Our economy needs fair competition in global markets to grow and ensure Canadian workers prosper,” said Deputy Prime Minister and Minister of Finance Chrystia Freeland.”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 labor and environmental standards.”
Freeland said that the government is taking action alongside key trading partners in a bid to ensure fair competition and protect Canadian workers. |
