Canada to Impose New Tariffs on Chinese Imports

By Promit Mukherjee
OTTAWA (Reuters) – Canada plans to impose tariffs on a slew of Chinese products from as early as next year, according to the government's fiscal update. This move is part of its broader investigation into imports from China.

Prime Minister Justin Trudeau's government has already put a 100% tariff on all Chinese electric vehicles and a 25% tariff on imports of Chinese steel and aluminum. The finance ministry has previously indicated it is exploring options to expand these duties.

The mid-year fiscal update, presented on Monday, revealed plans to apply tariffs to certain solar products and critical minerals from China early in the new year, with levies on semiconductors, permanent magnets, and natural graphite expected to follow in 2026.

"These measures will prevent Chinese non-market trade practices from causing unfair and harmful market distortions in Canada and throughout North America," the update stated.

Trudeau's government has often criticized the Chinese government’s policies of oversupply and over-capacity, emphasizing the need to protect local jobs from inexpensive Chinese products.

This stance against China has also served to show U.S. President-elect Donald Trump that Canada aligns with the U.S. in its opposition to Beijing.

Trump has threatened to impose 25% tariffs on Canadian goods if Canada does not curb the flow of drugs and illegal immigrants across the U.S. border by his inauguration on January 20.

The fiscal update, also referred to as the Fall Economic Statement, did not provide specifics on the extent or specific products affected by the new duties, but indicated that more information would be announced soon.