Canadian firms facing tariffs on imports of Chinese electric vehicles, steel, and aluminum products can request temporary remission of these tariffs, the finance ministry announced. This relief is meant to help companies adjust their supply chains in response to the new tariffs imposed by Canada. The measures were announced in late August, with a 100% surtax on EVs effective Oct. 1 and a 25% surtax on steel and aluminum products coming into effect on Oct. 22. Remission will only be granted under specific and exceptional circumstances, according to the ministry’s statement.
The federal government will consider the appropriate duration of remission, intending to provide it on a transitional basis in most cases. Remission will be considered in situations where goods used as inputs cannot be sourced domestically or reasonably from non-Chinese sources, where there are contractual requirements requiring businesses to purchase Chinese inputs, and in other exceptional circumstances that could have significant adverse impacts on the economy. However, remission will not be granted for goods intended for resale in the same condition to the United States.
The goal of the remission measures is to allow Canadian industry enough time to adjust their supply chains. The government recognizes the challenges facing businesses due to China’s intentional policy of over-capacity and aims to provide relief in specific situations. The imposition of tariffs on Chinese imports of EVs, steel, and aluminum products was a response to China’s state-directed policy, which has resulted in over-capacity in these sectors. The government hopes to support Canadian firms in adapting to these new tariffs through the remission measures.
Remission will be granted on a case-by-case basis, taking into account the specific circumstances of each situation. The government will prioritize providing remission on a transitional basis in most cases, with the intention of supporting Canadian businesses as they adjust their supply chains. The ministry emphasized that the remission measures are designed to address specific and exceptional circumstances where relief is warranted due to the impact of the tariffs on Canadian industry.
Overall, the remission measures announced by the finance ministry aim to support Canadian firms facing tariffs on imports of Chinese electric vehicles, steel, and aluminum products. The government recognizes the challenges posed by these tariffs and intends to provide relief in specific and exceptional circumstances. By allowing for temporary remission of tariffs, the government hopes to help Canadian businesses adjust their supply chains and alleviate the impact of the new tariffs on their operations.
