Canada has announced plans to impose a 100% tariff on electric vehicles (EVs) imported from China, along with a 25% duty on Chinese steel and aluminum. The move comes after similar measures were taken by the United States and the European Union.
According to Canadian officials, the tariffs aim to address concerns over China’s subsidies to its EV industry, which are seen as providing an unfair competitive advantage in the global market.
“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,” said Prime Minister Justin Trudeau.
The tariffs on Chinese EVs will take effect on October 1, while the duties on steel and aluminum will be implemented on October 15.
China’s Response
China’s Ministry of Commerce criticized the tariffs, calling them an act of “trade protectionism” that violates World Trade Organization (WTO) rules. A spokesperson urged Canada to reconsider, stating that the actions “seriously undermine the global economic system, and economic and trade rules.”
China is Canada’s second-largest trading partner after the United States.
Similar Measures by Other Countries
In May, the U.S. announced it would quadruple its tariffs on Chinese EV imports to 100%. The EU followed with plans to impose duties of up to 36.3% on China-made EVs.
The Canadian tariffs will also apply to EVs manufactured by Tesla at its Shanghai factory. Mark Rainford, a China-based car industry analyst, suggested that Tesla might explore options to mitigate the impact, including shifting Canadian imports to U.S. or European factories.
Implications for the EV Market
While Chinese EV brands are not yet common in Canada, companies like BYD have taken initial steps to enter the market. China, the world’s largest EV manufacturer, continues to grow its share of the global market.
At the same time, Canada has been positioning itself as a key player in the global EV supply chain. The country has signed multi-billion-dollar deals with major European automakers to support its ambitions of becoming a hub for EV production.
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