Canada will implement new tariffs that closely mirror recent actions by the United States.
Starting October 1, 2024, Prime Minister, Justin Trudeau announced that import taxes on electric vehicles made in China will rise to 106.1%, up from the current rate of 6.1%. This adjustment is intended to prevent Chinese EVs from gaining a significant foothold in the Canadian market.
Tariffs on Chinese-made steel and aluminum products will increase to 25% effective October 15, with a final list of affected products to be released on October 1.
Trudeau stated that these measures are necessary to prevent China from gaining an “unfair advantage” in the market. Currently, Chinese brands are not major players in Canada’s EV sector, but imports from China have surged recently, specially after Tesla shifted its Canadian sales from U.S. factories to its Shanghai plant.
In May, U.S. President Joe Biden increased tariffs on Chinese-made EVs to 100% in response to concerns about unfair subsidies from Beijing to Chinese EV manufacturers. Trudeau indicated that Canada is also considering additional tariffs on computer chips and solar cells as part of a broader strategy to protect Canadian workers from “unfair” trade practices by China.
