In a bold move by the federal government, businesses are now able to request remission from the recently imposed tariffs on Chinese electric vehicles, steel, and aluminum products. This relief is aimed at helping Canadian industries navigate the challenges of adjusting their supply chains in light of these new tariffs.
Key points to note about the remission process include:
– Prime Minister Justin Trudeau announced on August 26 the implementation of a 100% tariff on Chinese electric vehicles and a 25% tariff on steel and aluminum.
– The tariff on Chinese electric vehicles became effective on October 1, while the tariffs on steel and aluminum are set to be enforced starting from October 22.
– The federal government will consider requests for remission from businesses that rely on the imported products and are unable to source them elsewhere, or in cases where contractual obligations were made prior to the announcement of the tariffs, among other exceptional circumstances.
Finance Minister Chrystia Freeland has called out China for unfair trading practices and cited their “abysmal” environmental and labor standards, which she believes enable them to price and dump products into the market unfairly, at a significant cost to both the environment and workers.
The decision to implement these tariffs followed a mandatory month-long consultation process as required by Canadian law. The Liberal government’s move aligns with similar tariffs announced by the United States earlier in the year, although the U.S. tariffs have yet to be put into effect. Pressure from industry groups, including automakers, steel, and aluminum plants, played a significant role in Canada’s decision to match the U.S. tariffs.
China responded to the tariffs by filing a complaint against Canada at the World Trade Organization and launching an anti-dumping probe into Canadian canola imports. They have expressed their commitment to defending the “legitimate rights and interests of Chinese companies” in response to these trade actions.
As businesses navigate the challenges posed by these tariffs, the federal government’s offer of remission provides a glimmer of hope for those affected. It is crucial for businesses to explore this opportunity to mitigate the impacts of these newly introduced tariffs and maintain their operations effectively.
