Canada May Follow U.S., Europe With Tariffs on Chinese EVs

Published on June 21, 2024 in Electric by The Car Guide

The Canadian government could soon follow the lead of the U.S. and Europe by slapping tariffs on electric vehicles coming from China in order to ensure the playing field stays level.

According to reports by Bloomberg, which spoke with people familiar with the Trudeau administration’s plans, public consultations on new tariffs for Chinese EVs are expected to be announced within days.  

Last month, the U.S. decided to quadruple tariffs on all new Chinese-made EVs. More recently, the European Union said it would increase its own tariffs on Chinese EVs to as much as 48 percent on some models. 

Ontario Premier Doug Ford on Thursday criticized Chinese automakers for using weak labour regulations and dirty energy to manufacture EVs at lower costs.

“China is flooding the market with artificially cheap electric vehicles. Unless we act fast, we risk Ontario and Canadian jobs,” Ford wrote on X.

Justin Trudeau said he took part in serious talks about this issue during last week’s G7 summit in Italy.

“China has an intentional, state-directed policy of overcapacity,” Finance Minister Chrystia Freeland's press secretary, Katherine Cuplinskas, wrote in an email.

She also stressed the need to protect Canadian jobs, the manufacturing industry and the country’s free trade agreements.

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