Canada has announced a significant move to impose a 100% tariff on imports of Chinese-made electric vehicles, aligning with similar measures taken by the United States. Additionally, a 25% tariff will be applied to Chinese steel and aluminum imports. Prime Minister Justin Trudeau emphasized the need for these tariffs, citing China's unfair advantage in the global marketplace.
The decision follows a 30-day consultation initiated by the Canadian government earlier this summer in response to concerns raised by Deputy Prime Minister Chrystia Freeland regarding Chinese companies creating a global oversupply. This move by Canada mirrors recent actions by the U.S. and the European Commission to increase tariffs on Chinese electric vehicles.
The call for these tariffs was reinforced by U.S. national security advisor during a meeting with Canadian officials. Currently, the only Chinese-made electric vehicles imported into Canada are from Tesla's Shanghai factory, with no Chinese-branded EVs being sold or imported at present.
Freeland emphasized the importance of Canada aligning with its allies in the U.S. and the EU, particularly due to the integrated nature of the North American auto sector. The government aims to prevent Canada from becoming a dumping ground for Chinese oversupply.
U.S. President Joe Biden has criticized Chinese government subsidies for EVs and other goods, arguing that they provide Chinese companies with an unfair advantage in global trade. Chinese firms can offer electric vehicles at prices as low as $12,000, with Chinese officials defending their production capacity as beneficial for the transition to a green economy.