Toronto, Canada – Canada announced that it will enforce a 100% tariff on imports of electric vehicles (EV) made in China, following similar decisions made by the United States and European Union. In addition, the country plans to impose a 25% duty on Chinese steel and aluminum. The move comes as Canada and its Western allies accuse China of providing subsidies to its EV industry, alleging that this practice gives Chinese car manufacturers an unfair advantage in the global market.
Canadian Prime Minister Justin Trudeau expressed the country’s stance, stating, “We are transforming Canada’s automotive sector to be a global leader in building the vehicles of tomorrow, but actors like China have chosen to give themselves an unfair advantage in the global marketplace.” These duties on Chinese EVs are scheduled to take effect on October 1, while tariffs on steel and aluminum will be implemented on October 15. China stands as Canada’s second-largest trading partner, after the US.
The US previously announced a plan to increase tariffs on imports of Chinese EVs to 100%, followed by the EU’s decision to impose duties on China-made EVs ranging up to 36.3%. Canada’s tariffs on Chinese EVs will also impact vehicles produced by Tesla at its Shanghai factory. Industry commentary suggests that Tesla may seek adjustments to these tariffs from the Canadian government, considering potential impacts on their Canadian market.
Despite Chinese car brands not being a common presence in Canada, companies like BYD have shown interest in entering the Canadian market. China holds the position of the world’s largest EV manufacturer, with its car makers rapidly gaining a significant share of the global market. On the other hand, Canada has been forging significant deals with major European car manufacturers, aiming to establish itself as a key player in the global EV industry.