The Department of Finance of Canada has announced that the federal government plans to apply an additional tax of 25 percent on steel products from China. Hot rolled coils, cold rolled coils, steel pipes, electrical steel sheets are among the products, on which the tax will be applicable from October 15.
According to the statement, the final list of products within the scope of the new tax program will be published by October 1. However, the additional tax will not be applied to Chinese products that are already in transit to Canada on the date the tax will begin.
Moreover, the government pointed out that the outcome of the decision will be reviewed within a year after the implementation and that the period of taxes could be further extended and supported by additional measures if necessary.
Additionally, Canada will deal with Chinese overcapacity in electric vehicle (EV) market, which has been threatening the domestic automotive sector. In line with this goal, the government plans to impose an additional tax of 100 percent on all EVs made in China in addition to a current 6.1 percent tax from October 1.
As SteelOrbis reported previously, The Canadian Steel Producers Association and the Aluminium Association of Canada demanded urgent action against Chinese imports, stating that excess capacity flooding from China is threatening the domestic market, resulting in unfair trade.
The products subject to additional tax currently fall under Customs Tariff Statistics Position Numbers 7206.10.00, 7206.90.00, 7207.11.00, 7207.12.00, 7207.19.00, 7207.20.00, 7208.10.00, 7208.25.00, 7208.26.00, 7208.27.00, 7208.36.00, 7208.37.00, 7208.38.00, 7208.39.00, 7208.40.00, 7208.51.00, 7208.52.00, 7208.53.00, 7208.54.00, 7208.90.00, 7209.15.00, 7209.16.00, 7209.17.00, 7209.18.00, 7209.25.00, 7209.26.00, 7209.27.00, 7209.28.00, 7209.90.00, 7210.11.00, 7210.12.00, 7210.20.00, 7210.30.00, 7210.41.00, 7210.49.00, 7210.50.00, 7210.61.00, 7210.69.00, 7210.70.00, 7210.90.00, 7211.13.00, 7211.14.00, 7211.19.00, 7211.23.00, 7211.29.00, 7211.90.00, 7212.10.00, 7212.20.00, 7212.30.00, 7212.40.00, 7212.50.00, 7212.60.00, 7213.10.00, 7213.20.00, 7213.91.00, 7213.99.00, 7214.20.00, 7214.30.00, 7214.91.00, 7214.99.00, 7215.10.00, 7215.50.00, 7215.90.00, 7216.10.00, 7216.21.00, 7216.22.00, 7216.31.00, 7216.32.00, 7216.33.00, 7216.40.00, 7216.50.00, 7216.99.00, 7217.10.00, 7217.20.00, 7217.30.00, 7217.90.00, 7218.10.00, 7218.91.00, 7218.99.00, 7219.11.00, 7219.12.00, 7219.13.00, 7219.14.00, 7219.21.00, 7219.22.00, 7219.23.00, 7219.24.00, 7219.31.00, 7219.32.00, 7219.33.00, 7219.34.00, 7219.35.00, 7219.90.00, 7220.12.00, 7220.20.00, 7220.90.00, 7221.00.00, 7222.11.00, 7222.19.00, 7222.20.00, 7222.30.00, 7222.40.00, 7223.00.00, 7224.10.00, 7224.90.00, 7225.11.00, 7225.19.00, 7225.30.00, 7225.40.00, 7225.50.00, 7225.91.00, 7225.92.00, 7225.99.00, 7226.11.00, 7226.19.00, 7226.20.00, 7226.91.00, 7226.92.00, 7226.99.00, 7227.10.00, 7227.20.00, 7227.90.00, 7228.20.00, 7228.30.00, 7228.40.00, 7228.50.00, 7228.60.00, 7228.70.00, 7229.20.00, 7229.90.00, 7301.10.00, 7302.10.00, 7302.40.00, 7302.90.00, 7304.11.00, 7304.19.00, 7304.22.00, 7304.23.00, 7304.24.00, 7304.29.00, 7304.31.00, 7304.39.00, 7304.49.00, 7304.51.00, 7304.59.00, 7304.90.00, 7305.11.00, 7305.12.00, 7305.19.00, 7305.20.00, 7305.31.00, 7305.39.00, 7305.90.00, 7306.11.00, 7306.19.00, 7306.21.00, 7306.29.00, 7306.30.00, 7306.40.00, 7306.50.00, 7306.61.00, 7306.69.00, and 7306.90.00.