The Facts

• Following the US and EU, Canadian Prime Minister Justin Trudeau announced on Monday that it will impose a 100% tax on Chinese-made EV imports. Furthermore, the country plans to impose a 25% tariff on steel and aluminum from China.

• The move follows accusations from Canada and its Western allies that China is subsidizing its EV industry, giving its car manufacturers an unfair advantage. China has criticized the action as "trade protectionism" that "violates World Trade Organization rules."

• At a Halifax press conference, Trudeau said Chinese EV overproduction and auto industry subsidies "require us to take action." The EV surtax, on top of 6.1% import tariffs, will apply to Chinese electric and hybrid passenger cars, trucks, buses, and delivery vans starting October 1.