Canada has announced that it will be imposing a 100% tariff on imports of China-made electric vehicles (EV), following similar moves by the US and European Union. In addition, the country also plans to impose a 25% duty on Chinese steel and aluminium.
The decision comes as Canada and its Western allies accuse China of subsidizing its EV industry, giving its car makers an unfair advantage in the global marketplace. Canadian Prime Minister Justin Trudeau stated, “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.”
China has responded by calling the move “trade protectionism” and claiming that it violates World Trade Organization rules. The country’s embassy in Canada released a statement saying, “The rapid development of China’s electric vehicle industry is a result of persistent technological innovation, well-established industrial and supply chains, and full market competition.”
Canada’s duties on Chinese EVs are set to come into effect on 1 October, while those on steel and aluminium will be implemented from 15 October. The tariffs will also include those made by Tesla at its Shanghai factory.
Tesla, a major player in the EV market, may seek to lobby the Canadian government to mitigate the impact of the tariffs. If unsuccessful, the company could consider shifting its Canadian imports to the US or European factories.
China is Canada’s second-largest trading partner, behind the US. The move to impose tariffs on Chinese imports of EVs reflects a broader trend among Western countries to address what they see as unfair trade practices in the global automotive industry.
