Canada considers new tariffs on Chinese electric vehicles, in line with US and EU actions

In an effort to act in concert with the United States and the European Union, the Canadian government announced on Monday that it is considering plans to impose new tariffs on Chinese electric vehicles.

According to AFP on June 24, the Canadian government confirmed that it was considering a plan to impose new tariffs on electric vehicles imported from China, a move that is consistent with the actions taken by the United States and the European Union. Canadian Deputy Prime Minister Chrystia Freeland said at a press conference that the Canadian auto industry "faces unfair competition from China's deliberate overcapacity policy, which is undermining the competitiveness of Canada's electric vehicle industry in domestic and global markets."

Bloomberg quoted sources as saying that the Canadian government has not made a final decision on the new tariff measures, but plans to solicit public opinions on the tariff issue next week.

In May this year, US President Joe Biden announced that tariffs on Chinese electric vehicles would be raised to 100%, and China criticized the US for violating WTO rules. After a long anti-subsidy investigation, the European Union also announced that it would impose additional tariffs of up to 38.1% on electric vehicles imported from China from July.

German Vice Chancellor Robert Habeck led a delegation of German small and medium-sized enterprises to visit China last week. Reuters pointed out that Beijing hopes that the EU will cancel its plan to impose tariffs on Chinese electric vehicles by July 4. The European Commission said it will hold technical talks with Chinese officials in Brussels this week.

Official data shows that Canada's auto industry produces more than 1.5 million vehicles a year and contributes $13 billion to the Canadian economy. Ottawa has been building the country's electric vehicle and battery supply chain through tens of billions of dollars in subsidies and investments. Currently, the only electric vehicles produced in China exported to Canada are American brand Tesla.

Freeland also stressed on Monday that Canada will take action to "level the playing field, prevent oversupply, and prevent the transshipment of (Chinese-made electric vehicles) through Canada."