Politics

Canada imposes 100 percent tariffs on electric cars from China

Canada follows the US example and imposes 100 percent tariffs on electric cars from China starting October 1.

Eulerpool News Aug 27, 2024, 4:22 PM

Canada has announced it will impose a 100 percent tariff on electric vehicles from China starting October 1. This measure follows the example of the USA, which introduced similar tariffs in May. The Canadian government justifies this move with the aim of creating fair competitive conditions for the domestic industry. According to Finance Minister Chrystia Freeland, Chinese manufacturers benefit from state-supported overcapacity and less stringent labor and environmental protection standards.

In addition to the tariffs on electric cars, Canada will impose a 25 percent tariff on Chinese steel and aluminum products starting October 15. These measures are part of a broader strategy aimed at protecting the domestic industry and reducing dependency on foreign supply chains. The Canadian government also plans to conduct consultations on other industrial sectors such as batteries, semiconductors, and solar products to consider possible additional measures.

In the USA and Canada, Chinese electric vehicles are currently only sporadically available on the market. Nonetheless, there is concern within the industry that the affordable vehicles from China could pose a serious threat to the local automotive industry. These concerns have prompted governments to take protective measures.

The European Union presented its own plans in June to introduce tariffs on Chinese electric cars. These tariffs involve different rates depending on the manufacturer, including 36.3 percent for SAIC, 17 percent for BYD, and 9 percent for Tesla vehicles produced in China.

With these measures, Canada and other Western countries are sending a strong signal against the increasing market presence of Chinese electric vehicles and attempting to protect their own industries from unfair competition.

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