Canada to hit China with tariffs on electric vehicles, aluminum, steel
CTV
Prime Minister Justin Trudeau says Canada will impose a 100-per-cent tariff on Chinese-made electric vehicles, along with 25 per cent tariffs on aluminum and steel from China, in an effort to protect domestic manufacturing.
"So we're taking action to address that."
Chinese brands are not a major player in Canada's EV market right now, but imports from China have exploded in the last year after Tesla switched from U.S. factories for its Canadian sales to its manufacturing plant in Shanghai.
Chinese EV giant BYD, which stands for Build Your Dreams, established a Canadian corporate entity last spring and has indicated it intends to try and enter the Canadian market as early as next year. It has seen exponential growth in Europe, which is also planning new tariffs on electric vehicles made in China, though they will end up being less than half the Canadian and U.S. tariffs if the European bloc approves them in October.
A senior government official who briefed reporters on background at the cabinet retreat said the government has been in talks with Tesla about switching the cars intended for the Canadian market from China to its other plants.
U.S. President Joe Biden quadrupled the import tariff on Chinese-made EVs to 100 per cent in May, citing unfair subsidies from Beijing to Chinese EV makers.
The U.S. commerce department is also investigating national security concerns related to internet-connected vehicles from China and other countries.
The U.S. hiked tariffs on a lengthy list of other Chinese products in May, including solar cells, computer chips, medical equipment and lithium ion batteries.
