On September 10, the Canadian government announced that it is considering expanding the scope of tariffs on Chinese products, expanding from electric vehicles, steel and aluminum previously to key minerals, batteries and parts, solar products and semiconductors.
To that end, Canada launched a second 30-day public consultation period, beginning on September 10 and ending on October 10, to solicit comments on the possibility of additional duties on key Chinese mineral products, batteries and battery parts, solar products and semiconductors, as well as on the timing of the entry into force of the potential measures. The measures will be based on an Aug. 26 announcement by the Canadian government.
On August 26, following an initial 30-day consultation period, the Government of Canada announced that it would impose a 100% tariff on all Chinese-made electric vehicles from October 1 and a 25% tariff on steel and aluminum imports from China from October 15th.
Canada is committed to achieving net-zero carbon emissions by 2050, and in order to achieve this goal, investments in key manufacturing industries such as batteries, semiconductors, solar products and key minerals are critical.
Canada has a proud history of manufacturing, an abundance of key minerals, a highly skilled workforce and world-class environmental, social and governance standards,” said François-Philippe Champagne, Minister of Innovation, Science and Industry. Globally, Canada is recognized as a strategic partner with high-quality key minerals that are critical to the transition to a net-zero economy. As a result, the Government of Canada has decided to take tangible action to continue strengthening the domestic supply chain by launching this consultation.”
Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources, said, “The Government of Canada is supporting our industries and workers to move quickly to build strong, reliable and competitive value chains for key minerals, electric vehicles and clean technologies. As we capitalize on the tremendous economic opportunities presented by the transition to a low-carbon future, we are taking the necessary actions to protect Canadian workers in areas that are critical to our domestic economy, environment and energy security.”
However, if Canada ultimately decides to impose tariffs on key Chinese-made minerals, batteries and components, solar products and semiconductors, it may force the Chinese government to take additional countermeasures.