blog
Canada to Implement Surtax on Chinese Electric Vehicles, Steel and Aluminum
Canada’s Department of Finance announced several measures regarding the import of Chinese electric vehicles. Read the full publication here.
Announcement Highlights
Effective October 1st, 2024
Chinese electric vehicle imports into Canada will be subject to a 100% surtax. The surtax is in addition to any current tariffs or duties and will be applicable to electric and certain hybrid passenger automobiles, trucks, buses and delivery vans.
Effective October 15th, 2024
Chinese steel and aluminum products imported into Canada will be subject to a 25% surtax in addition to any current duties or tariffs. A list of specific products subject to a surtax will be provided by October 1st, 2024. Applicable products in transit prior to the implementation date will be exempted.
Launch of a 30-Day Sector Consultation
The Canadian government is also launching a second 30-day sector consultation focused on batteries, battery parts, semiconductors, solar panels and critical minerals. The presumed intent of this consultation will be for the government to determine if further action, including any trade remedies, is warranted regarding the import and protection of these industry sectors.
Limitation on the Eligibility for iZEV, iMHZEV and ZEVIP
The government also announced its intention to limit eligibility for the Incentives for Zero-Emission Vehicles (iZEV), the Incentives for Medium and Heavy Duty Zero Emission Vehicles (iMHZEV) and the Zero Emission Vehicle Infrastructure Program (ZEVIP). Eligibility for these incentives may be limited to products manufactured in countries that maintain a current free trade agreement (FTA) with Canada.
What to Expect Next
All measures announced by the Canadian government will be reviewed on an annual basis with the intent to adjust or supplement them as needed. Both the United States and the European Union have recently invoked similar trade measures to address industry sector concerns within their economies.
More detailed information is expected to be made available soon which will allow Canadian importers and buyers to further determine the impact to their international trade programs.
Delmar Services & Support
Our Canadian Customs Advisory team will continue to monitor developments and is available to assist importers with related questions or analysis needs.
Delmar will continue to provide pertinent updates as they become available.
For additional information and assistance, please contact your local Delmar Representative.