Canada’s Customs Tariff Schedule: Goods Subject to Chinese Steel and Aluminum Surtax

Information c/o Department of Finance Canada

Background

The Government of Canada has released a notice of intent to impose surtaxes on Chinese steel and
aluminum in response to unfair Chinese trade practices.

The Government recently assessed unfair Chinese trade practices in the electric vehicles sector. Concerns
were raised regarding unfair competition from China, including pervasive subsidization, and lack of
rigorous labour and environmental standards in the steel and aluminum sector. Stakeholders indicated
Chinese producers are benefiting from unfair, non-market acts, policies and practices and jeopardizing
investments for producers in Canada.

Canada, like-mind trading partners, and the Organization for Economic Cooperation and Development
(OECD) have long noted concerns with Chinese structural overcapacity and impacts on global trade. China
is the world’s largest steelmaker, producing over 1 billion metric tonnes in 2023 (54% of global
production). Since softening global demand, China has increased its capacity by 18.6 million metric tonnes
(more than Canada’s total production capacity) since 2018.

The United States and Mexico have identified similar concerns, in May of 2024 the US announced an
increase in its section 301 tariffs on a range of products imported from China, including steel and
aluminum.

Scope of Surtax

The federal government intends to impose a 25% surtax on imports of steel and aluminum products from
China and a 100% surtax on all Chinese-made Electric Vehicles, including electric and certain hybrid
passenger automobiles, trucks, buses, and delivery vans. The initial list of goods subject to this surtax and
those related to EVs can be found & downloaded below.

The final list of goods subject to surtaxes will be announced by October 1st, 2024, with the surtaxes taking
effect on October 15th, 2024. The surtaxes will not apply to Chinese goods that are in transit to Canada on
the day on which these surtaxes come into force. The government intends to review this change within
one year.

Further Resources

• Department of Finance Canada News Release
• Department of Finance Canada Steel & Aluminum News Release
• CBSA Canadian Customs Tariff Schedules & Information
• Department of Justice Customs Tariff Act

Contacting the Department of Finance: Written comments should be provided no later than September 20, 2024. Submissions, at a minimum, should include the following information:

1. Company/organization name, address, telephone number, and contact person.
2. The relevant eight-digit tariff item(s) and description of the goods of particular interest.
3. Reasons for the expressed support for, or concern with, the proposed surtaxes, including detailed information substantiating any expected beneficial or adverse impact.
4. Indication of whether any information provided is commercially sensitive.

Email your comments and feedback to tariff-tarif@fin.gc.ca, including “Steel and aluminum surtaxes” in the subject line. Comments and feedback may also be sent by mail to:

International Trade Policy Division (Steel and Aluminum Surtaxes)
Department of Finance
90 Elgin Street, 14th Floor
Ottawa, Ontario K1A 0G5

You may also contact Border Information Services if you have questions or CBSA through their Client Support Contact Form.