• It's confirmed, Canada will follow the U.S. lead and impose 100-percent tariffs on EVs from China.
This past July, the Canadian government launched a month-long public consultation to determine how to proceed with tariffs on electric vehicles from China.
That consultation came in the wake of the decision by the Biden administration in the U.S. to slap 100-percent tariffs (102.5 percent to be exact) on electric vehicles imported from China.
Tariffs were likely inevitable, but the question was how far the Canadian government would go. The answer came yesterday, as Prime Minister Justin Trudeau announced that Canada will also impose 100 percent tariffs on imported Chinese EVs.
The government will also stick a 25-percent tariff on steel and aluminum imports from China.
Explained Prime Minister Trudeau, “I think we all know that China is not playing by the same rules. What is important about this is we're doing it in alignment and in parallel with other economies around the world.”
Ottawa is trying to position Canada as an essential part of the global supply chain for electric vehicles, all while the federal government is under domestic pressure to act against China.
With billions being announced by various manufacturers for electric vehicle investments in Canada, authorities had little choice but to take steps to protect the market and the Canadian automotive economy.
This week, the United States is expected to announce details of the tariff increases announced there.
