CANADA IS CONSIDERING IMPOSING A TARIFF ON CHINESE EVs

By Éric Descarries

Canadian Prime Minister Justin Trudeau has just announced the options his government is considering in order to discourage the sale of Chinese electric vehicles (EVs) on the Canadian market. These even include the possibility of imposing a tariff on their importation into the country, or blocking Chinese investment in new plants in Canada.

This announcement applies only to new vehicles built in China. For example, the list of tariffs under consideration does not include batteries or their components. However, the government will have to first consult certain organizations and study the reactions of shareholders, unions and the automotive industry. This consultation will end on August 1, 2024.

No concrete figures or information have been released. But there’s also the possibility of making EVs built in China ineligible for consumer rebates. Another issue raised by the government is that of the possible disclosure of private and security data via connected vehicles and other related infrastructures.

Canada will rally behind its allies. The U.S. has already unveiled plans to quadruple the tariff already imposed on Chinese EVs (resulting in a final tariff of 102.5 %), but nothing has yet transpired about importing Chinese-built Teslas into America. The European Union is also considering a 48 % tariff increase.

PICTURE CREDIT: BYD