By W. G. S. D. Wijesinghe, Jadetimes news
Canada has announced it will impose a 100% tariff on imports of electric vehicles (EVs) manufactured in China, aligning with similar measures recently taken by the United States and the European Union. Additionally, Canada plans to implement a 25% duty on Chinese steel and aluminium imports. These moves come amid accusations from Canada and its Western allies that China is unfairly subsidizing its EV industry, giving Chinese car manufacturers an advantage in the global market.
Canadian Prime Minister Justin Trudeau emphasized the need to protect and transform Canada’s automotive sector into a global leader in producing next generation vehicles. He stated that countries like China have gained an unfair competitive edge, necessitating these tariffs. The tariffs on Chinese made EVs are scheduled to take effect on October 1, while the duties on steel and aluminium will be enforced starting October 15.
In response, a spokesperson for China’s Commerce Ministry criticized Canada’s actions, labeling them as "trade protectionism" and arguing that they violate World Trade Organization (WTO) rules. The spokesperson urged Canada to reconsider its position, warning that these measures could seriously undermine the global economic system and trade regulations.
China, Canada’s second largest trading partner after the United States, has expressed strong opposition to the tariffs. The move follows the U.S. decision in May to quadruple its tariffs on Chinese EV imports to 100%, and the European Union’s plan to impose duties of up to 36.3% on China made EVs.
The tariffs will also impact Tesla, which manufactures some of its vehicles at its Shanghai factory. Industry analysts, like China-based car commentator Mark Rainford, suggest that Tesla may seek to mitigate the impact of these tariffs by lobbying the Canadian government or shifting its Canadian imports to its U.S. or European factories.
Chinese car brands, though not yet widespread in Canada, have begun exploring entry into the Canadian market. China, as the world’s largest EV manufacturer, has rapidly secured a significant share of the global market. Meanwhile, Canada is actively pursuing partnerships with major European car manufacturers, investing billions to position itself as a key player in the global EV industry.
