Canada follows the U.S. in imposing a 100% tariff on imports of Chinese-made electric vehicles.

Canada announced a 100% tariff on imports of Chinese-made electric vehicles, matching U.S. tariffs and citing unfair advantages due to Chinese subsidies. This decision came after a meeting between Canadian Prime Minister Justin Trudeau and U.S. national security adviser Jake Sullivan, who is set to visit Beijing. The tariffs also include a 25% tariff on Chinese steel and aluminum. Chinese EVs, including those from Tesla’s Shanghai factory, will be affected, potentially impacting Canada’s EV market. Chinese giant BYD has shown interest in entering the Canadian market. In response, Chinese officials may raise concerns about U.S. tariffs, as they continue to recover from the impact of the Covid-19 pandemic. President Biden has imposed tariffs on Chinese goods, citing unfair practices such as subsidies that give Chinese companies a competitive edge. Canada is planning consultations on possible tariffs on other Chinese goods like batteries, semiconductors, and metals, aiming to protect its own industries. Despite the potential for Chinese retaliation in other sectors, Canada’s former ambassador to China believes aligning with the U.S. is necessary due to economic ties. Canada’s decision reflects a coordinated effort with other countries to address the challenges posed by Chinese trade practices.

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