CANADA TO IMPOSE TARIFFS ON CHINESE ELECTRIC VEHICLE AND STEEL IMPORTS

By Éric Descarries

Now it’s the Canadian government’s turn to apply high tariffs on imports of Chinese electric vehicles and certain metals from the same country. Following suit of the United States, the country’s largest trading partner, Canada will impose a 100 % tax on electric vehicles and a 25 % tax on steel and aluminum from China, much to the dissatisfaction of the Asian country, which has already retaliated with a promise of revenge (yet to be determined).

The decision was made to protect the local automotive industry and recent investments in the local production of batteries and battery components. The announcement was made by Prime Minister Justin Trudeau in Halifax on August 26. This tax comes on top of the 6.1 % already in place for vehicles from other Asian countries. The new 106.1 % tax, which will also apply to a category of electric and hybrid buses, trucks and delivery vans, will come into effect on October 1. As for the 25 % surcharge on steel and aluminum, this will take effect on October 15.

PICTURE CREDIT: BYD