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Prime Minister Justin Trudeau's government has already slapped a 100 per cent tariff on all Chinese electric vehicles and a 25 per cent tariff on imports of Chinese steel and aluminum products. The finance ministry has said it's exploring options to widen the duties.

The mid-year fiscal update presented on Monday showed that Ottawa has decided to apply tariffs to imports of certain solar products and critical minerals from China early in the new year, with levies on semiconductors, permanent magnets, and natural graphite following in 2026.

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Trudeau's government has frequently criticized the Chinese government-funded policy of oversupply and over-capacity. He has said Canada needs to protect local jobs from cheap Chinese products finding their way into the country.