Trade Cases
China challenges Canada’s tariffs on steel, aluminum, EVs
Written by Laura Miller
October 4, 2024
China is challenging Canada’s decision to impose tariffs on imports of Chinese steel, aluminum, and electric vehicles.
The 25% tariffs on Chinese steel and aluminum, announced by the Canadian government in late August, won’t go into effect until Oct. 15.
But collection of the 100% tariffs on EVs began on Oct. 1.
China wasted no time in responding. On Wednesday, Oct. 2, China’s Ministry of Commerce announced its intentions to dispute the tariffs at the World Trade Organization (WTO).
“China has filed a lawsuit against Canada’s unilateralism and trade protectionism in the WTO and has launched an anti-discrimination investigation into Canada’s restrictive measures,” a Ministry spokesperson said.
“Canada should view bilateral economic and trade cooperation rationally and objectively, respect facts, abide by WTO rules, and not go further and further down the wrong path,” they added.
After Canada first announced the tariffs in late August, China retaliated by launching an antidumping investigation into its imports of canola oil from Canada.
“China’s antidumping investigation on canola imports from Canada is fundamentally different from the discriminatory measures taken by Canada in violation of WTO rules,” the Ministry spokesperson said. They added that AD cases are legitimate and WTO-compliant.
Of note on Canadian tariffs
Canada has provided lists of the products covered under the new tariffs: The metals items can be found here, and the EV list can be found here.
The Canadian government noted that “the surtaxes will not apply to Chinese goods that are in transit to Canada on the day on which these surtaxes come into force.”
It said it would review the surtaxes a year after implementation to consider extending them or supplementing them with additional measures.
Canadian steel industry cheers
Canada’s steel industry had previously called for the alignment of tariffs with the US and welcomed the levies.
“With this tariff alignment with our CUSMA partners, the US and Mexico, we are protecting the North American trading space against China’s state-sponsored excess capacity and its destructive effects on our markets,” said Catherine Cobden, president and CEO of the Canadian Steel Producers Association (CSPA).
The tariffs “will align us with our largest trading partner and protect our highly integrated North American supply chains,” she added.
Laura Miller
Read more from Laura MillerLatest in Trade Cases
Price on Trade: IEEPA tariffs head to the Supreme Court, DOJ ramps up trade enforcement
International trade law and policy remain a hot topic in Washington and beyond this week. We are paying special attention to the ongoing litigation of the president’s tariff policies and the administration’s efforts to heighten trade enforcement.
Mexico considers stiff tariffs for steel, autos, and other imports
Mexico is considering imposing steep tariffs on imports of steel, automobiles, and over 1,400 other products. Its target? Countries with which it does not have free trade agreements, mainly China, India, Thailand, and other South Asian nations.
Leibowitz: With ‘reciprocal’ tariffs struck down again in court, what happens next?
President Trump’s “reciprocal” tariffs under the International Emergency Economic Policy Act (IEEPA) were struck down again, this time on Aug. 29 by the Court of Appeals for the Federal Circuit (CAFC). The legal and policy mess continues, with the next stop being the US Supreme Court.
Market unfazed by US circuit court’s IEEPA decision
Repealing any reciprocal tariffs placed by President Donald Trump on US imports of direct reduced iron (DRI), iron ore, hot-briquetted iron (HBI), and pig iron would have only a nominal impact on the US steel market, market participants said.
ITC votes to keep HR duties after sunset review
The US government determined this week that hot-rolled steel imports from a handful of countries continue to threaten the domestic steel industry.