The News
The Canadian government will impose a 100% tariff on Chinese-made electric vehicles, Prime Minister Justin Trudeau announced Monday, becoming the latest Western government to move to curb China’s dominant EV sector.
“We’re doing it in alignment, in parallel, with other economies around the world that recognize that this is a challenge that we are all facing,” the Canadian leader said.
The duty matches US tariffs that are expected to be finalized this week and is similar to a plan proposed by the European Commission. Trudeau also announced a new 25% tariff on Chinese steel and aluminum.
The new EV tariff is also set to apply to US carmaker Tesla, which imports vehicles made at its Shanghai factory into the country. Tesla’s EVs are the only Chinese-made electric cars currently sold in Canada, although BYD is reported to be eyeing an entry into the market.
Chinese Foreign Minister Wang Yi is likely to bring up tariffs and trade barriers when he meets with White House national security adviser Jake Sullivan on Tuesday, Chinese state newswire Xinhua reported.
China’s export-driven economy heavily relies on trade with the United States, and Ottawa has been closely monitoring the Biden administration’s moves in order to keep the two North American economies aligned, according to Bloomberg. But Ottawa is also preparing for a potential second Trump term that would be more economically hostile against China, a former Canadian ambassador to the US told the Associated Press.
“They know we have to be pretty much aligned in all of this,” the ambassador said.