Canadian Prime Minister Justin Trudeau has put a 100 percent tariff on Chinese electric vehicle imports, matching US steps aimed at preventing a flood of Chinese state-subsidized vehicles into North America.
He accused China, one of the world’s major exporters of electric vehicles (EVs), of “not playing by the same rules as other countries” in areas such as environmental and labor norms. On Monday, he also announced a 25% tariff on Chinese steel and aluminum imports.
In recent months, the United States and the European Union put 100% and 38% tariffs on Chinese electric vehicles, respectively.
Canada’s auto manufacturing industry employs over 125,000 people, and Ottawa has invested billions of dollars to help it transition to electric vehicles and establish a domestic electric battery supply chain.
Its policy, which has tempted Goodyear Tyre, Honda, Stellantis, Volkswagen, and others with subsidies, is similar to that of the United States, where the Inflation Reduction Act has provided numerous incentives to the green industry.
Ottawa has also halted new Chinese investment in the essential minerals mining sector. At a news conference in Halifax, on Canada’s Atlantic coast, Trudeau said Chinese EV overproduction and generous state subsidies for the auto sector “requires us to take action.”
The EV surtax, which will be added to existing 6.1 percent import taxes, will take effect on October 1 and will apply to Chinese electric and hybrid passenger autos, lorries, buses, and delivery vans.
Ottawa would also limit the eligibility for EV subsidies to vehicles manufactured in nations with which Canada has free trade agreements, excluding China. It will impose a surtax on Chinese steel and aluminum imports beginning October 15.
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