Canada has announced a major move against Chinese-built electric vehicles (EVs), slapping a 100% tariff on all EVs coming from China.
The new tariffs are set to take effect on October 1, 2024. They are part of Canada’s response to what officials describe as China’s “overcapacity strategy” that they believe threatens the competitiveness of the Canadian EV market. This was reported by the auto magazine Drive.
Prime Minister Justin Trudeau made it clear that this decision aligns with actions taken by other global powers, saying, “We’re doing this in sync with other economies around the world.”
The tariffs will apply to all Chinese-built EVs imported into Canada, including popular Tesla models produced in Shanghai. According to data from Vancouver’s port, imports of Chinese cars surged by 460% in 2023, largely due to Tesla’s shipments from China to Canada.
In addition to the EV tariffs, Canada will also impose a 25% tariff on Chinese-imported aluminum and steel, further escalating trade tensions between the two countries.
China has criticized the move, calling it a "politically motivated act" that violates World Trade Organization (WTO) rules. Despite this, Canada is moving forward with the tariffs, following the lead of the United States, which introduced similar measures earlier this year.
The new tariffs could significantly impact Canadian consumers, especially those looking to buy Tesla vehicles, which will now be more expensive. While the European Union recently lowered its tariffs on Tesla, it's unclear if Canada will follow suit.
Former US President Donald Trump has voiced support for the tariffs, saying he would maintain them on Chinese EVs, even if they are assembled in Mexico, if re-elected.
