Canada’s Prime Minister Justin Trudeau announced new tariffs on Chinese imports during a press conference following a cabinet shuffle at Rideau Hall in Ottawa. Starting October 1, Canada will impose a 100% import tariff on electric vehicles (EVs) manufactured in China. This move aligns Canada with the U.S. and the European Union, which have recently levied similar tariffs due to concerns over unfair subsidies.
Currently, Canada applies a 6.1% tariff on Chinese-manufactured EVs. Alongside the EV tariffs, starting October 15, the government will also implement a 25% tariff on steel and aluminum imports from China. The Chinese steel industry is the third-largest source of steel imports for Canada.
The Canadian finance department cited “unfair competition” and detrimental trade practices from China as the impetus for these measures. These actions aim to “level the playing field for Canadian workers” and support domestic EV, steel, and aluminum producers to compete more effectively both locally and globally. Trudeau’s government plans to review these measures one year after their implementation and may extend or amend them.
The announcement follows the Biden Administration’s 100% tariff on Chinese EVs in May and the EU’s increased tariffs on China-made EVs in July, though the EU recently reduced some planned tariffs on Chinese-made Tesla EVs and other brands.
China has expressed strong discontent with Canada’s new tariffs, labeling the move as a violation of World Trade Organization (WTO) rules and detrimental to trade relations. A spokesperson from the Chinese Embassy in Canada emphasized that China’s EV industry thrives on technological innovation and market competition, not government subsidies.
Chinese state media reported that despite BYD opening its first bus assembly plant in Toronto in 2019, Chinese EV brands have not gained significant market share in Canada. However, automobile imports from China to Vancouver surged by 460% in 2023, fueled by Tesla’s Shanghai-made EV shipments.
In addition to these tariffs, Canada will review other critical industries, including batteries, semiconductors, and solar products, to safeguard national interests.
— Reporting by Sonia Heng, CNBC.
Original Story https://www.cnbc.com/2024/08/27/canada-to-slap-100percent-import-tariffs-on-chinese-electric-vehicles.html
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