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Canada Mulls Surtax on Chinese Critical Mineral Products, Batteries, Solar Products

The sun rises against high-rise buildings in Beijing on September 6, 2024. (Photo by ADEK BERRY / AFP)
The sun rises against high-rise buildings in Beijing on September 6, 2024. (Photo by ADEK BERRY / AFP)
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Canada Mulls Surtax on Chinese Critical Mineral Products, Batteries, Solar Products

The sun rises against high-rise buildings in Beijing on September 6, 2024. (Photo by ADEK BERRY / AFP)
The sun rises against high-rise buildings in Beijing on September 6, 2024. (Photo by ADEK BERRY / AFP)

Canada has said it was considering a potential surtax on Chinese critical mineral products, batteries and parts, solar products, and semiconductors, a move which could prompt more retaliation from Beijing.
Canada announced last month it would impose a 100% tariff on imports of Chinese electric vehicles and announced a 25% tariff on steel and aluminum from China.
According to Reuters, the finance ministry said in a statement it was launching a 30-day public consultation period on the potential surtax. It ran a similar exercise before the first tariff announcement.
"Canadian workers, the auto sector, and related critical manufacturing supply chains currently face unfair competition from Chinese producers, who benefit from China's intentional, state-directed policy of overcapacity," it said.
A Chinese embassy spokesperson described the Canadian announcement as "expanding its unilateralism and protectionism measures,” adding that "China strongly opposes such measures and will continue to take resolute measures to defend its legitimate rights."
China, which deplored the tariffs unveiled in August, announced on Monday the start of a one-year anti-dumping investigation into imports of rapeseed from Canada.

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Gold Edges Higher as US Inflation Data Looms

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)
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Gold Edges Higher as US Inflation Data Looms

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)

Gold prices inched higher on Wednesday as the dollar eased, with traders' attention turning to key US inflation data that may influence the Federal Reserve's next policy decision.

Spot gold was up 0.2% at $2,524.54 per ounce, as of 0842 GMT. US gold futures edged 0.4% higher to $2,553.80.

The dollar index slipped 0.2%, making greenback-priced bullion more attractive to buyers holding other currencies, Reuters reported.

The US inflation Consumer Price Index (CPI) data is due at 1230 GMT. The headline CPI is expected to have risen 0.2% on a month-on-month basis in August, according to a Reuters poll, unchanged from the previous month.

The Fed will lower interest rates by 25 basis points at each of the three remaining policy meetings in 2024, according to a majority of economists in a Reuters poll that found only nine of 101 expected a half-percentage-point cut next week.

Lower rates boost the appeal of holding non-yielding bullion.

A rate cut should suggest a weaker dollar and by extension gold would benefit but the market might have over-positioned ahead of the long awaited Fed pivot, so prices might go lower before marching much higher, said independent analyst Ross Norman.

"Gold maintains its range-trading, but with a positive bias. We may see fresh highs in gold in 2024 and I would not be surprised to see a test of $2,650," Norman added.

Other data points due this week include the US producer Price Index reading and initial jobless claims.

Bullion has gained more than 22% so far this year and scaled successive record highs, fuelled by rate-cut optimism, geopolitical turmoil and robust central bank demand.

Among other metals, spot silver was up 1.3% at $28.76 per ounce, platinum inched 0.1% higher to $938.34 and palladium firmed 1.1% to $975.50.