Canada will impose new tariffs on Chinese imports during the New Year

The government's latest fiscal update revealed that Canada will impose tariffs as soon as next year on a number of Chinese products as part of a larger investigation into the imports of the country.

The government of Justin Trudeau has already placed a tariff of 100% on all Chinese electric cars and a tariff of 25% on the imports from China. The finance ministry had previously stated that it was exploring ways to increase the tariffs.

The mid-year financial update, presented on Monday, revealed that Ottawa had decided to apply tariffs early in 2019 to certain imports from China of solar products and minerals critical to the world's economy. Tariffs will be applied to semiconductors, permanent magnetics, and graphite in 2026.

The update stated that "these measures will prevent Chinese nonmarket trade practices from creating unfair and harmful distortions of the market in Canada and across the North American continent."

Trudeau has repeatedly criticized China's policy of excess supply and capacity, which is funded by the Chinese government. He said that Canada must protect its local jobs against cheap Chinese goods entering the country.

The Canadian government has used its opposition to China in the past as a way to demonstrate that Canada stands with its largest trading partner, Donald Trump, when it comes down on Beijing.

Trump has promised to impose 25% tariffs for goods coming from Canada, on his first official day of office on January 20, if Canada fails to stop the flow illegal immigrants and drugs across the border.

The fiscal update (also known as the Fall Economic Statement) did not specify the exact amount of duties that would be imposed on specific products. However, it said more details about the measures will be announced shortly. Promit Mukherjee reported, Kirsten Donovan edited.

(source: Reuters)