Canadian Prime Minister Justin Trudeau announced Monday that he would impose a 100 percent tariff on electric car imports from China, in line with U.S. efforts to prevent subsidized Chinese cars from entering North America.
Trudeau accused China, one of the world's largest exporters of electric vehicles (EVs), of “not playing by the same rules as other countries” on aspects such as environmental and labor standards. Canada has also imposed a 25 percent tariff on imports of steel and aluminum products from China.
The United States and the European Union in recent months have imposed tariffs on Chinese EVs of 100 percent and 38 percent, respectively.
Canada’s auto manufacturing industry employs more than 125,000 people. Ottawa has invested billions of dollars to support the transition to electric vehicles and strengthen the domestic battery supply chain.
This strategy, which has successfully attracted companies such as Goodyear Tire, Honda, Stellantis, Volkswagen and others through subsidies, follows the United States' move to implement the Reduction in Inflation Act to provide various incentives for green industries.
Ottawa has also blocked new Chinese investment in its vital mineral mining sector.
At a news conference in Halifax, on Canada's Atlantic coast, Trudeau said China's overproduction of electric vehicles and massive government subsidies for its auto sector “require us to act.”
“Unless we want to race to the brink of getting worse, we have to get tough, and that's what we're doing,” he said. In a statement, the administration described the tariffs as a response to “this extraordinary threat.”
The additional tax on electric vehicles, in addition to the existing 6.1 percent import duty, will apply from Oct. 1 to electric passenger cars, trucks, buses and delivery vans as well as certain hybrids from China.
Additionally, Ottawa will limit eligibility for electric vehicle incentives to vehicles manufactured in countries with free trade agreements with Canada, leaving China out.
Additional taxes on imports of steel and aluminum products from China will come into effect on October 15. (ah/es)
