In late August of this year, the Canadian government, in a proactive move, issued a notice of intent to charge surtaxes on steel and aluminum that originates in China. The Canadian government has diligently monitored China's steel and aluminum production to ensure it does not harm global trade in these products.

The Organization for Economic Cooperation and Development (OECD) has noted that in 2023, China has become the world's largest steel producer, accounting for approximately 54% of global steel production. Additionally, China has increased its steel production capacity by 18.6 million metric tonnes, surpassing Canada's total capacity.

China currently produces about 59% of the global aluminum supply, a significant increase since the early 2000s. The OECD has attributed this growth to anti-market policies and substantial subsidies to both industries in China.

Effective October 15, 2024, specific aluminum and steel goods of Chinese origin imported into Canada will be subject to a 25% surtax. The Department of Finance has released a preliminary list of the affected products and their 8-digit Harmonized System (HS) classifications. To see the final list of affected steel and aluminum goods, click here.

This imposition of the surtax aligns with Canada's largest trading partner, the United States, who, on May 14, 2024, increased their Section 301 tariffs on Chinese aluminum and steel imports.