Trudeau administration has implemented a 100% tariff on all Chinese electric vehicles and a 25% tariff on Chinese steel and aluminum imports. The finance ministry is exploring the possibility of further tariff expansion.
The mid-year fiscal update, released on Monday, revealed that Ottawa plans to impose tariffs on specific solar products and critical minerals from China at the beginning of the new year, with additional levies on semiconductors, permanent magnets, and natural graphite anticipated in 2026.
The update stated, "These measures will prevent Chinese non-market trade practices from causing unfair and harmful market distortions in Canada and across North America."
Trudeau's government has consistently criticized China's government-subsidized policies that lead to oversupply and excess capacity, emphasizing the need to safeguard local jobs from the influx of inexpensive Chinese products.
Additionally, the Canadian government has leveraged its stance against China to demonstrate alignment with U.S. President-elect Donald Trump, particularly in opposition to Beijing. Trump has pledged to impose 25% tariffs on Canadian goods on his first day in office, January 20, if Canada does not curb the flow of drugs and illegal immigration across its border with the U.S.
The fiscal update, also known as the Fall Economic Statement, did not specify the exact nature of the tariffs or the products affected, but it indicated that more information regarding these measures would be forthcoming.