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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.

BBC News

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."

Yahoo! News

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.

The Economic Times

The duties are applicable to all EVs imported from China, including those manufactured by Tesla. After Tesla began exporting EVs made in Shanghai to Canada, the country's imports of Chinese automobiles increased by 460% year-on-year, reaching over 44K in 2023.

Alarabiya

Chinese EVs have not established much of a presence in Canada, but BYD will try to enter the Canadian market in 2025. Tesla could avoid the tariff by shipping EVs to Canada from factories in the US or Germany.

Environmentalists in Canada are against imposing high tariffs on Chinese-made EVs. They argue that this would result in fewer affordable zero-emission cars, reduced competition, and increased climate pollution. Some argue Canada should consider adopting low tariffs, resembling those in Europe.

nytimes

Canada's export-driven economy is heavily reliant on trade with the US. The country closely monitors the Biden administration's decisions to increase tariffs on Chinese exports such as electric vehicles, batteries, solar cells, steel, and other goods. The US received the majority of Canada's 1.5M light car exports last year.

Canada hits China-made electric cars with 100% tariff

Canada hits China-made electric cars with 100% tariff

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Canada hits China-made electric cars with 100% tariff

Canada hits China-made electric cars with 100% tariff

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