October 18, 2024 News —— The Canadian government announced today the launch of a new procedure allowing Canadian businesses to apply for tariff relief on imports of electric vehicles, steel and aluminum products, and other goods from China. This measure aims to help companies address challenges in supply chain adjustments and promote the development of key manufacturing sectors.

Overview of the Tariff Relief Program

According to a release from the Canadian Department of Finance, starting fromOctober 18, 2024,Canadian businesses can apply for relief on additional tariffs imposed on key manufacturing products imported from China through a new application process. These products primarily include electric vehicles, steel, and aluminum products, with the goal of supporting local industries in adapting to and developing amid changes in the global trade environment.

Policy Background and Implementation Details

The introduction of this tariff relief policy is based on the numerous challenges Canadian industries may face during supply chain adjustments. The Department of Finance stated that applications for relief must be based on compelling circumstances to ensure policy resources effectively support businesses genuinely in need.

Specifically, companies must provide detailed business adjustment plans and supply chain restructuring strategies to demonstrate that tariff relief will help them maintain competitiveness and market share. The Department of Finance will conduct rigorous reviews of applications to ensure the fairness and effectiveness of the policy.

Benefiting Industries and Economic Impact

Preliminary data shows that in 2023, Canadas imports of electric vehicles and steel and aluminum products from China reached$2 billionand$1.5 billionrespectively. As global trade conditions become more complex, these industries have shown heightened sensitivity to tariff policies. Tariff relief will directly reduce import costs, helping businesses maintain a competitive edge in pricing.

Expert Views and Future Outlook

Economic analysts note that this tariff relief policy will help alleviate pressure on businesses facing trade barriers and promote stable development in key manufacturing sectors. By reducing import tariffs, Canadian businesses will be able to adjust their supply chains more flexibly and enhance market competitiveness, said an anonymous economic expert.

Additionally, the policys implementation is expected to boost Canadas imports of key manufacturing products over the next year, further driving optimization and upgrading of local supply chains. As global economic uncertainties increase, this government measure is seen as a crucial step in supporting domestic businesses against external shocks.