Canada announced on Monday, Aug. 26, that it will be imposing a 100% tariff on Chinese-made electric vehicles and a 25% tariff on Chinese-made aluminum and steel. The move puts Canada in line with the U.S on EV tariffs in an effort to enhance the West’s competitiveness with China.
The value of Chinese electric vehicles imported by Canada surged in 2023 to 2.2 billion, up from less than $100 million in 2022.
In May, the Biden administration added tariffs on Chinese EV-makers, batteries, solar cells, steel aluminum and medical equipment. President Joe Biden said that China’s subsidies for EVs and other goods ensure Chinese companies don’t have to turn a profit and gives them an unfair advantage in global trade, a sentiment echoed by Canadian Prime Minister Justin Trudeau on Monday.
“Actors like China, have chosen to give themselves an unfair advantage in the global marketplace, compromising the security of our critical, critical industries and displacing dedicated Candian auto and metal workers,” Trudeau said.
The decision by Canada comes after a 30-day consultation this summer on how to best address China’s alleged efforts to “oversupply” the global market. Currently, no Chinese EVs are sold in Canada. However, the country’s tariffs aim to address future concerns over Chinese EVs flooding the Canadian market.
