Canada announces remission process for Chinese steel tariffs

“The government is ensuring Canadian workers and businesses are not unduly burdened by surtaxes on imports from China,” it added.

It further noted that remission won’t be granted for goods intended for resale in the same condition in the US.

Circumstances where remission would be considered include:

• “Situations where goods used as inputs, or substitutes for those goods, cannot be sourced either domestically or reasonably from non-Chinese sources;
• Where there are contractual requirements, existing prior to Aug. 26, 2024, requiring Canadian businesses to purchase Chinese inputs into their products or projects for a specified period of time; and,
• Other exceptional circumstances, on a case-by-case basis, that could have significant adverse impacts on the Canadian economy.”

Collection of the 25% tariffs on Chinese steel and aluminum products begins on Oct. 22, while the 100% tariffs on EVs started on Oct. 1.

Recall that earlier this month, China challenged the tariffs at the WTO.

Canadian steel, aluminum trade groups weigh in

The Canadian Steel Producers Association (CSPA) and the Aluminum Association of Canada (AAC) took a cooperative tone regarding remissions as long as they are applied judiciously.

“The Canadian steel and aluminum industries will continue working with the government to ensure a remission process that maintains the effectiveness of this critical tariff regime and that only applies in well-documented and unique circumstances,” the groups said in a joint statement on Tuesday.