Canada firms can request temporary relief from tariffs on China EVs, metals

Canada announced the measures in late August, citing China’s intentional, state-directed policy of over-capacity. A 100% surtax on EVs was imposed on Oct. 1 while a 25% surtax on steel and aluminum products comes into effect on Oct. 22.

“To ensure that Canadian industry has sufficient time to adjust supply chains, remission will provide relief … under specific and exceptional circumstances,” the ministry said.

“The federal government will consider the appropriate duration of remission, with intent to provide it on a transitional basis only in most cases,” according to the ministry.

Remission would be considered in the following cases:

• Situations where goods used as inputs, or substitutes for those goods, cannot be sourced either domestically or reasonably from non-Chinese sources.
• Where there are contractual requirements, existing prior to Aug. 26, 2024, requiring businesses to purchase Chinese inputs into their products or projects for a specified period of time.
• Other exceptional circumstances, on a case-by-case basis, that could have significant adverse impacts on the economy.

Remission will not be granted for goods intended for resale in the same condition to the United States.

(By David Ljunggren; Editing by Mark Porter)