Home - News - The Canadian government is allowing companies to apply for exemptions from tariffs imposed on Chinese electric vehicles and steel and aluminum products
The Canadian government is allowing companies to apply for exemptions from tariffs imposed on Chinese electric vehicles and steel and aluminum products
October 21, 2024
According to the Radio France International website reported on October 19, the Canadian Ministry of Finance said on the 18th that Canadian companies can apply for temporary relief from tariffs on imported Chinese electric vehicles, steel and aluminum products. Canada's Department of Finance said in a statement that exemptions would be granted under exceptional circumstances. The ministry said the measure is aimed at helping companies adjust their supply chains to cope with the new tariffs.
The Canadian government announced tariffs against China at the end of August, citing China's intention to pursue state-directed overcapacity policies. Canada has imposed a 100% tariff on all Chinese-made electric vehicles since October 1, including electric and partially hybrid passenger cars, trucks, buses and passenger and cargo dual-purpose vehicles. On October 22, a 25% tariff was imposed on some steel and aluminum imports from China.
"To ensure that Canadian businesses have sufficient time to adjust their supply chains, the tax relief will provide relief in exceptional circumstances... The Government will consider the appropriate duration of relief and intends to provide only transitional relief in most cases."
The Government of Canada will consider relief if the goods used as inputs or their substitutes are not available from Canada or a reasonable non-Chinese source; There is a contractual requirement prior to August 26, 2024 that requires the enterprise to purchase Chinese inputs for its products or projects within a specified period of time; Other special circumstances that may have a material adverse effect on the economy. No relief will be granted for goods intended for resale to the United States in the same state.
