Canadian Surtax On Imported Goods: Consultation Window Closes October 10, 2024

Introduction

Increased electric vehicle ("EV") production is a key global strategy for addressing climate change. However, Canada's auto manufacturing industry faces what the Government of Canada has described as an "extraordinary threat" from Chinese-produced EVs. In 2020, China emerged as the largest manufacturer and exporter of EVs in the world. In response, Canada announced its intention to impose a 100% surtax on Chinese-origin EVs (and lower surtaxes on other goods), which are said to be necessary to curb China's overcapacity and unfair trade practices. Canada has opened a window of opportunity for consultations by interested parties on certain issues related to the surtaxes. A brief summary is set out below.