Electric vehicles are being charged. Illustration: VCG

 
Canada announced a tariff remission process for Canadian businesses importing certain Chinese goods on Friday, allowing them to request remission of surtaxes on electric vehicles (EVs), steel and aluminum imported from China, according to an announcement by the Canadian federal government.

The remission will be available for potential taxes on critical manufacturing sector products, according to the announcement.

Observers from both countries noted that the decision to impose tariffs on Chinese products was unpopular and would harm the interests of ordinary Canadian consumers. They said that attempts to decouple from China will inevitably fail and ultimately backfire, causing harm to the domestic economy.

The federal government indicated that it would assess the appropriate length of time for tariff remission, aiming to offer it primarily on a temporary basis as supply chains adapt. In many cases, the remission may even be applied retroactively to the date the surtaxes were implemented.

Canada's 100 percent tariff on Chinese-made EVs took effect on October 1, including electric and certain hybrid passenger automobiles, trucks, buses and delivery vans.

Additionally, Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland on October 1 announced the finalized list of Chinese steel and aluminum products that will face a 25 percent surtax, set to take effect on October 22.

"The fact that the Canadian government has allowed applications for tariff waivers shows that its hardline tariff policy toward China has harmed business interests and is not aligned with the needs of Canadian importers and manufacturers," He Weiwen, a senior fellow at the Center for China and Globalization, told the Global Times on Sunday.

He noted that such policies are misguided, being primarily driven by political considerations and heavily influenced by the US. "They neither align with Canada's economic interests nor comply with WTO rules," He stressed.

Canada is unlikely to alter its overall tariff policy toward China, but the federal government may show flexibility in specific cases to mitigate the excessive impact on businesses, He said.

China has stressed its strong opposition to Canada's strict tariffs on Chinese-made EVs and steel and aluminum products.

China's Ministry of Commerce stated on October 2 that these actions violate the principles of the market economy and fair competition, severely damaging normal trade and economic cooperation between Chinese and Canadian businesses. These measures also significantly disrupt China-Canada trade relations and distort global supply and industrial chains. 

In addition, China has filed a complaint at the WTO against Canada's unilateralism and trade protectionism practices, according to the ministry.

Aidan Jonah, editor-in-chief of The Canada Files, told the Global Times on Sunday that many Canadians have voiced opposition to the increased tariffs on Chinese-made EVs, noting that EVs in Canada are already expensive and unaffordable for many consumers. 

"The additional tariffs would only further raise the financial burden on Canadian buyers. As can be imagined with an economy of China's size, Canada's missing out on the excellent economic opportunities with China hurts ordinary Canadian residents economically," Jonah said.

Canadians are not helped by the anti-China push of the Canadian government, Jonah said. "Canadians will only get to 'enjoy' being stuck with high EV prices, because of tariffs."