Prime Minister Justin Trudeau, right, visits Verbom, a sheet metal processing plant for the automotive and RV sectors in Sherbrooke, Quebec, on Thursday, August 22, 2024. ( The Canadian Press)


August 27, 2024 Tags:

Canada is introducing new tariffs on electric vehicles (EVs) imported from China, aiming to prevent these vehicles from gaining a strong presence in the North American market. Prime Minister Justin Trudeau announced this move during a federal cabinet retreat in Halifax on Monday. Starting October 1, the import tax on Chinese-made EVs will rise from 6.1 percent to 106.1 percent.

In addition, tariffs on Chinese steel and aluminum products will increase to 25 percent on October 15, with a detailed list of affected items to be released on October 1.

Trudeau emphasized the need to protect Canada’s automotive sector from unfair competition. "We are working to make Canada's automotive industry a global leader in the future of vehicle manufacturing. However, China’s actions have given them an unfair advantage, affecting our critical industries and displacing Canadian workers," he said. "Therefore, we are taking steps to address this issue."

Currently, Chinese brands are not dominant in Canada’s EV market. However, imports from China have surged in the past year, especially after Tesla moved its Canadian production from the U.S. to its Shanghai facility. Chinese EV maker BYD, which stands for Build Your Dreams, has recently set up a Canadian corporate branch and plans to enter the Canadian market by next year.

In Europe, BYD has experienced rapid growth, and new tariffs on Chinese EVs are also being considered. If approved, these tariffs will be significantly lower than those being set by Canada and the U.S.

A senior official revealed that the Canadian government has been discussing with Tesla the possibility of sourcing Canadian-bound vehicles from Tesla’s other manufacturing plants rather than from China.

Earlier this year, U.S. President Joe Biden increased the tariff on Chinese-made EVs to 100 percent, citing unfair subsidies provided by Beijing. The U.S. Department of Commerce is also looking into national security risks associated with internet-connected vehicles from China and other countries.

In May, the U.S. raised tariffs on various Chinese products, including solar cells, computer chips, medical equipment, and lithium-ion batteries.

Canada must follow a consultation process to implement these tariffs, which was conducted in July for EVs and steel and aluminum. Trudeau indicated that the government is also considering additional tariffs on computer chips and solar cells to further protect Canadian jobs from unfair practices by China.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

Markets Brace for Turbulence and Recession Fears as Liberation Day Approaches

Investors are on edge as Liberation Day, set for April 2, nears. As the year's first quarter ends on a....

Tencent Invests €1.2B in Ubisoft Spin-Off to Expand Gaming Empire

Chinese tech giant Tencent has made a €1.2 billion ($1.25 billion) investment in a newly formed Ubisoft subsidiary, securing a....

Trump’s Auto Tariffs Hit Canada Hard: A Trade War Unfolds

The U.S. has imposed a 25% tariff on finished vehicles imported into the country, marking one of the most severe....

Quebec Budget 2025 -2026 Fights Trump Tariffs But Sinks Deeper Into Debt

Quebec's finance minister, Eric Girard, has unveiled a historic $165.8-billion budget, aiming to strengthen the province’s economy in response to....

Samsung TV Pioneer Han Jong-Hee Passed Away at 63

Samsung Electronics has lost one of its key leaders. Han Jong-Hee, the co-CEO who played a major role in shaping....

Trump Plans New Tariffs for Vehicles & Pharmaceuticals, Near Future

U.S. President Donald Trump has announced plans to impose tariffs on vehicles and pharmaceuticals, further expanding his aggressive trade policies.....

Key Business Events to Watch in Canada This Week

This week brings several major developments in the Canadian business world. From political campaigns to economic reports, here are the....

Hudson’s Bay Begins Liquidation, But Six Stores Are Spared

Hudson’s Bay, Canada’s oldest company, has received court approval to start liquidating most of its stores. The Ontario Superior Court....

U.S. Tariffs Could be an Uphill Battle for Canada’s Greenhouse Industry

A fresh wave of U.S. tariffs on Canadian imports has sent shockwaves through Canada’s greenhouse sector, which heavily depends on....

Google’s $32B Wiz Deal: A Game-Changer for Cloud Security

Google has announced its biggest-ever acquisition, agreeing to buy cybersecurity firm Wiz for $32 billion in cash. This massive deal....

PepsiCo To Acquire Poppi to Expand in Healthy Soda Market

PepsiCo announced on Monday that it will acquire the prebiotic soda brand Poppi for $1.95 billion. The move comes as....

Hudson’s Bay May Start Its Stores Liquidation As Early As Tuesday

Toronto – Hudson’s Bay, the retail giant, is battling for survival as it seeks court approval to begin liquidating its....