OTTAWA — The Canadian government is reviewing tariffs imposed on Chinese electric vehicles, steel, and aluminum. This review comes nearly a year after the tariffs were implemented. A spokeswoman for Finance Minister François Philippe-Champagne confirmed that the government is assessing whether the current rates should remain in place.

Audrey Milette stated that imports of these Chinese products have significantly decreased since the tariffs were enacted. The government had pledged to evaluate these surtaxes one year after their introduction in October 2022. Milette noted, "Officials are currently undertaking work on this review, including an assessment of China’s policies and trade practices, and whether the scope of the surtaxes, as well as the surtax rate, remain appropriate."

This announcement coincides with the Prime Minister’s Office revealing that a representative will join an upcoming trade mission to China. The review is also taking place amid pressure from Western premiers to eliminate the tariff on Chinese electric vehicles. They argue that doing so could encourage China to lift its 76 percent tariff on Canadian canola.

In August 2022, former Finance Minister Chrystia Freeland announced measures aimed at creating a fairer competitive environment for Canadian workers in the steel, aluminum, and auto sectors. The government imposed a 25 percent surtax on Chinese steel and aluminum and a 100 percent surtax on Chinese electric vehicles. These actions were taken in response to what the government described as unfair competition and labor practices from China, particularly in the electric vehicle market.

China is the world’s largest exporter of electric vehicles, and Canadian officials expressed concerns that the influx of affordable Chinese electric vehicles could threaten the development of the North American market. The Canadian tariff mirrored a previous decision by former U.S. President Joe Biden, who also raised tariffs on Chinese electric vehicles to 100 percent, citing national security concerns related to their internet connectivity.

On the same day as the tariff review announcement, the Prime Minister’s Office stated that Kody Blois, a parliamentary secretary, would travel to China as part of a trade delegation led by Saskatchewan Premier Scott Moe. This delegation aims to address various trade issues, including the tariffs on Canadian canola.

The imposition of a 76 percent tariff on canola seed by China has been interpreted as a direct response to Canada’s tariffs on Chinese electric vehicles. Both Premier Moe and Alberta Premier Danielle Smith have urged the federal government to reconsider its stance on the tariffs to help resolve the ongoing trade dispute.

The Prime Minister’s Office indicated that it is taking steps to protect jobs in Canada’s canola industry and plans to announce additional support measures for Canadian producers soon. Sources suggest that Mark Carney, who has been meeting with his cabinet in Toronto, is expected to make a significant economic announcement on Friday.

Industry Minister Mélanie Joly also mentioned that an announcement to support Canadian industries affected by U.S. tariffs would be made in the coming days. Carney emphasized the potential for growth in trade between Canada and China, particularly in agriculture, stating, "We have differences with China, different approaches to a variety of things, but they are our second largest trading partner."

He highlighted the importance of addressing current issues surrounding canola and other agricultural exports, including pea protein and fisheries, and expressed a commitment to working towards resolving these trade challenges.