Canada announces new tariffs on Chinese technology and minerals

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Canada signaled Tuesday that it would likely impose new tariffs on Chinese batteries, technology products and key minerals soon.

The announcement of a 30-day public consultation on the proposed measures follows the imposition of 100% tariffs on imports of Chinese electric vehicles, which are due to come into effect on October 1.

“Today, I am announcing a 30-day consultation on imports into Canada from China of batteries and battery parts, semiconductors, critical minerals and metals, and solar products,” Deputy Prime Minister Chrystia Freeland said at a news conference in Nanaimo, B.C., where members of the governing Liberal Party are meeting.

In a statement, his office accused China of unfair competition in these areas which “threatens Canadian workers and businesses.”

The consultation on “potential surcharges in response to China’s unfair trade practices” will seek industry views on whether a surcharge should be applied and the timing of its implementation, it said.

Canadian tariffs on Chinese electric vehicles announced in late August are in line with U.S. measures aimed at pushing back an influx of Chinese state-subsidized cars into North America.

Ottawa also announced at the time a surtax on imports of steel and aluminum products from China.

China has announced it will launch an anti-dumping investigation into Canadian canola and chemicals, apparently in retaliation.

Canada is one of the world’s largest producers of canola – an oilseed plant used to make cooking oil, animal feed and biodiesel fuel – and China has historically been one of its biggest customers.

Beijing has also referred Canada’s electric vehicle tariffs to the World Trade Organization (WTO), calling them a “classic unilateral and protectionist trade act.”

amc/dw