Canada targets Chinese batteries with new tariffs initiative

Canada's Finance Minister Chrystia Freeland announced the initiation of a consultation period aimed at imposing tariffs on various clean energy goods imported from China, starting today. This decision follows a significant increase in tariffs on Chinese-made electric vehicles, which will rise from six to 106 percent effective October 1. Additionally, tariffs of 25 percent on certain steel and aluminum products from China are set to take effect on October 15. The upcoming 30-day review under the Customs Tariff Act will evaluate the necessity of tariffs on batteries, battery components, semiconductors, critical minerals, metals, and solar products. This move aligns Canada with the United States, which has also proposed increased tariffs on similar items earlier this year. The backdrop of these tariff initiatives includes a recent complaint lodged by China at the World Trade Organization regarding Canada's electric vehicle tariffs. Furthermore, China is conducting its own anti-dumping investigation into Canadian canola imports, indicating rising trade tensions between the two nations. These developments reflect Canada's strategic efforts to protect its domestic industries and promote clean energy initiatives while navigating complex international trade relations. The outcome of the consultation and potential tariffs could significantly impact the Canadian market and its relationship with China, particularly in the context of clean energy and critical minerals.