Canada imposing large tariffs on Chinese-made EVs

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OTTAWA — In reaction to the threat of the domestic automotive market being flooded with cheap, China-made electric vehicles, Canada will be imposing large tariffs on EVs imported from the communist dictatorship.

On Monday morning from the government’s annual pre-session retreat in Halifax, Prime Minister Justin Trudeau announced that Canada plans to impose a 100% tariff on imported Chinese EVs, as well as a 25% tariff on Chinese steel and aluminum.

“Because of our government’s choices, and the hard work of hundreds of thousands of Canadian autoworkers, we are transforming Canada’s automotive sector to be a global leader in building the vehicles of tomorrow,” Trudeau told reporters.

“But actors like China have chosen to give themselves an unfair advantage in the global marketplace, compromising the security of our critical industries, and displacing dedicated Canadian auto and metal workers.”

Trudeau said this and other topics were part of the conversations he and cabinet had with U.S. National Security Advisor Jake Sullivan, who arrived in Halifax on Sunday en route to talks in Beijing, where China’s EV industry will be a central topic of discussion.

The United States imposed a 100% China-made EV tariff in May, while the European Union imposed tariffs of up to 38%.

In a statement to the Toronto Sun, Canadian Vehicle Manufacturers Association President Brian Kingston called the move a “welcome step” in protecting the country’s auto industry.

“Given the highly integrated nature of the automotive industry across North America, alignment with the U.S. on the approach to China is fundamental to its continued success,” he said.

“With an upcoming review of the Canada-United States-Mexico Agreement in 2026 there is simply too much at stake for the automotive industry and broader economy if Canada is misaligned.”

bpassifiume@postmedia.com

X: @bryanpassifiume