Canada is reportedly planning to introduce new tariffs on Chinese electric vehicles, following the United States and the European Union (EU), Bloomberg News reported on the 20th (local time), citing sources.
According to the report, Canada will soon begin public consultations on the introduction of tariffs on Chinese electric vehicles. This move aims to align with the tariff measures previously announced by the US and EU allies. The news agency stated, "Western major countries are concerned about China's overproduction," adding, "Battery electric vehicles have become a primary target as companies like BYD aggressively enter the global market."
Earlier, the Joe Biden administration in the US decided to raise tariffs on Chinese electric vehicles up to 102.5%. The EU also announced tariff measures on Chinese electric vehicles last week, with rates reaching up to 48%. Consequently, Canadian Prime Minister Justin Trudeau is under pressure to establish tariff barriers at levels similar to those of these allied countries.
Doug Ford, Premier of Ontario, criticized China on social media platform X (formerly Twitter) the day before, stating that China uses low wages and environmentally harmful energy to produce inexpensive electric vehicles. He urged the Trudeau government to introduce tariffs at least at the US level, warning, "If we do not act quickly, Canadian jobs could be at risk."
According to the news agency, as Tesla began producing the Model Y at its Shanghai factory, the number of vehicles imported from China to the port of Vancouver, Canada, reached 44,400 last year, more than five times the previous year. The report noted, "The Canadian government's concern is not Tesla, but the prospect that cheap cars made by Chinese manufacturers will flood the market." Last week, at the G7 summit, Chrystia Freeland, Canada's Minister of Finance, stated, "We are actively considering the next steps to respond to China's overproduction."
The Canadian automotive industry is also demanding higher tariffs on Chinese imports. In particular, they argue that there is no reason to be out of sync with the United States ahead of the 2026 review of the United States-Mexico-Canada Agreement (USMCA). The automotive supply chains of the US and Canada are closely connected, and most vehicles produced in Canada are exported to the US.
However, Prime Minister Trudeau is currently taking a cautious stance considering the possibility of Chinese trade retaliation. While monitoring the actions of other countries, he has not publicly confirmed any plans to introduce new tariffs. Chinese automakers have recently reportedly urged their government to impose tariffs of up to 25% on EU-made vehicles in response to the EU's tariffs.
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