Canada considers special tariffs on EVs from China

Following the lead of the US and the European Union, Canada is allegedly looking to impose tariffs on EVs made in and imported from China. Ontario Premier Doug Ford has called for Ottowa to at least match US tariffs on Chinese EVs, which is 100 per cent.

Symbolic image: EVs manufactured in China at the harbour.
Image: BYD

Bloomberg news agency reports, citing insiders, that the Canadian government will soon announce the start of public consultations on tariffs. However, nothing is set in stone. So far, a spokeswoman for Finance Minister Chrystia Freeland has only said that Canada is “actively considering next steps to counter Chinese oversupply.” She added: “Protecting Canadian jobs, manufacturing, and our free trade relationships is essential.”

Meanwhile, Doug Ford, the Premier of the Canadian province of Ontario, has more concrete ideas. He calls for the Canadian government to “match or exceed US tariffs on Chinese imports, including at least a 100 per cent tariff on Chinese electric vehicles.” As reported, special tariffs on EVs from China will be effective on 1 August in the US. In the EU, additional tariffs on imported Chinese electric cars will likely be levied from 4 July.

According to Bloomberg, the value of imported EVs from China has recently skyrocketed in Canada. From 100 million Canadian dollars in 2022 to 2.2 billion in 2023, corresponding to 68 million and 1.5 billion euros, respectively. For its part, the country has promised to invest billions in the domestic electric vehicle industry. Volkswagen, Stellantis, and Honda are, among others, planning to build corresponding factories. Due to the tariffs announced by the US and the EU, Canada will likely fear that China could increasingly offer its electric cars where the hurdles are lower – for example, in Canada.

So far, Prime Minister Justin Trudeau and his cabinet ministers have only said they are monitoring the situation. Trudeau also said he had “significant conversations” about Chinese production at the recent G7 summit., (Doug Ford)


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