On September 17, 2026, the Canadian International Trade Tribunal formally ruled to terminate the second sunset review of anti-dumping and countervailing duties on crystalline silicon photovoltaic (PV) modules and laminates originating in China, and to revoke the relevant duty orders. The Canada Border Services Agency will no longer collect anti-dumping and countervailing duties. The more than decade-long AD/CVD barriers against Chinese PV products have thus been lifted, and Chinese PV exports to Canada will receive most-favoured-nation (MFN) treatment, with tariffs reduced to 0%.
Previously, anti-dumping duties on Chinese PV products in Canada were as high as 154.4%, while countervailing duties stood at CAD 0.340 per watt. The products covered by this ruling include PV modules and laminates made from crystalline silicon PV cells, as well as thin-film PV products such as amorphous silicon, cadmium telluride, and copper indium gallium selenide. The main HS codes are 8541.42.00.00 and 8541.43.00.00. The announcement also lists excluded categories: PV products with a rated power not exceeding 100 W and PV products integrated into electrical equipment whose primary function is not power generation are not within the scope of this adjustment.
The core reason Canada terminated the AD/CVD measures is that its domestic PV manufacturing capacity has shrunk substantially. Domestic manufacturers such as Heliene have basically ceased production of comparable products since the end of 2022. More than 95% of off-grid PV modules in Canada rely on imports, and there is almost no large-scale domestic PV module production capacity. Removing the tariffs will have little impact on Canadian domestic manufacturing and employment.
The production of PV modules involves chemical products such as EVA/POE encapsulant films, backsheet materials, silane coupling agents, electronic-grade hydrofluoric acid, and silver paste. Previously, high AD/CVD tariffs suppressed Chinese PV module exports to Canada, indirectly restraining supporting demand for upstream chemical materials. After tariffs are reduced to zero, the price competitiveness of Chinese crystalline silicon PV modules in the Canadian market will improve significantly, which is expected to drive a simultaneous increase in export demand for related new chemical materials.
The backdrop to this removal of PV tariffs is that during Canadian Prime Minister Carney's visit to China in January 2026, the two sides signed the China-Canada Economic and Trade Cooperation Roadmap. Canada reduced the surtax on Chinese electric vehicles from 100% to the 6.1% MFN rate and set an annual import quota of 49,000 vehicles. In the steel and aluminum sectors, Canada extended previously implemented relief measures for certain Chinese steel and aluminum products to the end of 2026 and expanded their coverage. On solar products and semiconductors, Canada clearly stated that it would no longer proceed with the previously proposed plan to impose additional tariffs on certain Chinese solar and semiconductor products.
China also made corresponding adjustments. From March 1 to December 31, 2026, China will not impose the additional 100% tariff on oilseed cake/meal and peas originating in Canada, and will not impose the additional 25% tariff on lobsters and crabs. China will also reduce the anti-dumping duty on Canadian canola seed from 75.8% to 5.9%.
Trade in chemicals between China and Canada has not been fully liberalized. In early September 2026, China's Ministry of Commerce stated that it would launch an anti-dumping investigation into relevant Canadian chemical products. The specific categories and investigation progress have not yet been announced, and uncertainties remain for the chemical industry in China-Canada trade.
The elimination of PV AD/CVD tariffs is a clear positive for exporters of new chemical materials. Canada's PV market is highly dependent on imports. After tariffs are reduced to zero, Chinese module export volumes are expected to grow significantly, and export demand for supporting chemicals such as encapsulant materials, backsheets, and silane coupling agents is expected to rise accordingly.
