Canada’s federal government in Ottawa has imposed 100% import tariffs on Chinese electric vehicles (EVs), saying the move is necessary to counter “unfair subsidies.”
The new 100% tariff comes into effect on Oct. 1 and replaces a current tariff of 6.1% that is placed on electric vehicles imported from China.
In announcing the 100% tariff, the government of Prime Minister Justin Trudeau is following similar moves taken by the U.S. and European Union with respect to Chinese electric vehicles.
In addition to the tariff placed on EVs, Ottawa also announced a new 25% tariff on China-made steel and aluminum imports, which takes effect Oct. 15.
China is currently the third-largest country for steel imports into Canada, according to data from the Canadian Steel Producers Association.
Government officials in Ottawa said Canada is acting to counter unfair trade practices from China.
The Trudeau government said that its new tariffs imposed on China will be reviewed a year after coming into effect to determine if they are working as intended or if additional measures are needed.
In a news release, the Chinese Embassy in Ottawa expressed “resolute opposition” to the new tariffs and said they violate World Trade Organization (WTO) rules.
Auto imports from China into Canada rose 460% year-over-year to 44,356 in 2023, though Chinese made electric vehicles make-up a small percentage of overall vehicle sales in the country.
