Canada announces the date of implementation of duties on Chinese steel and aluminum

The Government of Canada has announced the final list of Chinese steel and aluminum products that will be subject to a new 25% additional duty. The safeguard measure will take effect on October 22. This is stated in the press release of the Ministry of Finance of Canada.

As for steel products, the country’s Ministry of Finance has published a list of more than 160 harmonized tariff codes that define products that will be subject to the additional tax. The list includes, among other things, hot-rolled and cold-rolled products, coated products, certain types of tubes, sheet and shaped products, bars, etc.

The duty will not apply to Chinese goods in transit to Canada on the day it comes into force.

“We are moving in lock-step with key international partners to protect Canadian workers and businesses in our steel and aluminum sectors from China’s intentional, state-directed policy of overcapacity and oversupply, which is undermining Canada’s ability to compete in domestic and global markets. Canada is taking decisive action to level the playing field and protect Canadian workers and investments in Canadian industry,” said the Deputy Prime Minister and Minister of Finance Chrystia Freeland.

The intention to take this step was announced in August this year after consultations with stakeholders. As noted, the consultations confirmed that additional measures are needed to address the extraordinary threat posed by Chinese producers.

However, some parties are concerned about the difficulty of adjusting supply chains before these measures come into effect. To provide Canadian industry with time to resolve the issue, the government intends to introduce a mechanism for reviewing requests for duty relief. Potential factors that may be included in this system are situations of shortage that require additional time to switch to alternative sources of supply (certification requirements, other exceptional circumstances, etc.).

In addition, Canada’s 100 percent tariff on all Chinese electric vehicles imported into the country, including some hybrids, trucks, and buses, came into effect on October 1.

The federal government intends to review the new measures within one year of their entry into force.

As GMK Center reported earlier, Canadian steelmakers support the introduction of duties on Chinese steel imports. According to the declaration, the industry recognizes the efforts to implement a proactive approach to protect the sector from unfair trade practices and to coordinate measures with the country’s most important trading partner, the United States. Zekelman Industries, the largest independent steel pipe producer in North America, also joined the statement.