Canada imposes 100% tariff on China made EVs

After planning to impose a 25% duty on Chinese steel and aluminum, Canada furthers its firmness against Chinese imports. This is followed by similar steps taken by the United States and the European Union. Subsidising its EV industry, China is being accused by the US, EU and their allies for giving its car manufacturers an unfair advantage.

In retaliation, China claims these violate the World Trade Organisation laws and further calls it ”trade protectionism”. Canadian Prime Minister Justin Trudeau states, ”We are transforming Canada’s automotive sector to be a global leader in building the vehicles of tomorrow, but actors like China have chosen to give themselves an unfair advantage in the global marketplace”.

A Chinese Commerce Ministry representative stated that Canada’s actions undermine the global economic and trade rules, and economic system. Further urging Canada to change its policy.

A couple of months ago, the US announced a 300% increase in import tariffs against Chinese EVs. This was then followed by the European Union, which announced plans to impose more than 36% on China-made EVs.

Canada’s tariffs on Chinese EVs will also include Tesla made cars in China. The EU cut its planned extra tariff on China-made Tesla vehicles by more than half.

China is the world’s largest manufacturer of EVs. Canada, meanwhile, has struck deals worth billions of dollars with major European car makers, as it tries to become a key part of the global EV industry.