Many businesses will soon face additional costs on steel and aluminum products from China and Chinese-made electric vehicles (EVs) imported into Canada. The federal government has announced a 100% surtax on all Chinese-made EVs, effective October 1, 2024 and a 25% surtax on imports of steel and aluminum products from China, effective October 15, 2024. The federal government also noted two other significant initiatives. The government intends to launch a 30-day consultation to hear feedback from other sectors and businesses that import batteries and battery parts, semiconductors, solar products, and critical minerals. The government also intends to limit eligibility for select incentives for zero emission vehicles to trade agreement partners.
The Department of Finance provided a list of more than 200 tariff classifications of steel and aluminum and EV products that may be affected. Businesses facing these new measures may want to take immediate action. KPMG’s Trade and Customs professionals can help businesses identify imported goods in their supply chains that may be subject to these increased surtaxes and assess the effects of the new trade measures on their operations.
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