Following the U.S. government’s announcement in May of high tariffs on Chinese electric vehicles and steel, the Canadian government is now adopting a similar tariff policy towards China.
On August 26 local time, Canadian Prime Minister Justin Trudeau announced that Canada will impose a 100% tariff on electric vehicles imported from China and a 25% tariff on steel and aluminum imported from China. These tariff rates are comparable to those imposed by the U.S.
The Canadian Ministry of Finance stated that the new tariff policy for Chinese electric vehicles, which includes passenger cars, trucks, buses, and vans, will take effect on October 1. The tariffs on steel and aluminum will take effect two weeks later.
Additionally, Canada is considering a 30-day consultation period regarding potential tariffs on Chinese batteries, battery components, semiconductors, critical minerals, metals, and solar panels.
Automobile manufacturing is one of Canada’s most significant industries, with factories concentrated in the Great Lakes region serving American consumers. According to the Canadian government, the industry directly employs nearly 120,000 people. Ottawa is also following the U.S. model of providing subsidies to stimulate demand for domestically produced electric vehicles.
Post time: Aug-28-2024