Question Period Note: Canada’s Surtaxes on Imports of Electric Vehicles, Steel and Aluminum from China

In October 2024, in response to China's non-market policies and practices, Canada imposed a 100% surtax on imports of EVs, and a 25% surtax on imports of steel and aluminum from China.

• We are committed to leveling the playing field for Canadian workers and businesses facing unfair competition. That’s why we’ve taken steps to ensure they can compete fairly.
• Canada’s surtaxes respond to China’s unfair trade practices, including problematic labour and environmental standards. China’s practices artificially lower production costs and lead to significant market distortions and overcapacity.
• Canada is not alone in responding to China’s non-market policies and practices. Other trading partners have taken measures to defend their industries from the harms caused by Chinese overcapacity.
• Canada will continue to work with likeminded partners to explore ways to support fair competition, a level playing field for businesses, and more open, sustainable and inclusive trade.
• Our government will – at all times – stand up for Canadians and defend them from the harmful effects of unfair trade practices.

On August 26, 2024, Canada announced that it would implement a 100% surtax on Chinese-made EVs, effective October 1, 2024, and a 25% surtax on steel and aluminum products from China, that came into effect October 22, 2025.

Canada's measures were taken as an exceptional response to the threat posed by unfair competition from Chinese producers, who benefit from China's intentional, state-directed policy aimed at achieving global dominance in strategic sectors, as well as its lack of rigorous labour and environmental standards. These unfair Chinese practices benefit Chinese-made EVs, steel and aluminum and have an adverse impact on Canadian businesses, workers and consumers.

In response, China initiated a number of trade actions, including requesting WTO dispute settlement consultations on Canada's surtaxes on Chinese EVs, steel and aluminum.

On September 26, 2024, China launched a domestic "anti-discrimination" investigation against Canada under its Foreign Trade Law. This is the first time China has undertaken such an investigation under this law.

On March 8, 2025, China announced the conclusion of the "anti-discrimination" investigation, which resulted in the announcement of tariffs of 100% on canola oil, canola meal, and peas, as well as tariffs of 25% on some pork, fish and seafood products imported from Canada. These tariffs entered into force on March 20, 2025.

On April 7, Canada and China engaged in WTO dispute settlement consultations, which did not resolve the dispute. On May 23, Canada blocked China's first request for the establishment of a dispute settlement panel at the WTO. The panel will be established following China's second request for a panel, which will likely be in June 2025.

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