Canada Imposes 100% Tariff on Chinese Electric Vehicles... China "Will Take All Necessary Measures"

Tariffs Imposed on Chinese-Made Electric Vehicles Following the US and EU

Canada has announced plans to impose a 100% tariff on electric vehicles made in China, prompting China to indicate its intention to take all necessary measures to rectify the situation.

[Image source=AP Yonhap News]

On the 27th, a spokesperson for the Chinese Ministry of Commerce stated on the official website, "China has strong grievances and firmly opposes this. We urge Canada to immediately correct its wrongful practices."

The spokesperson argued, "Canada claims to support free trade and the multilateral trading system under the World Trade Organization (WTO) rules, but blatantly violating WTO regulations, blindly following individual countries, and unilaterally declaring tariff increases is a typical protectionist measure."

They added, "Canada's actions will undermine global industry and supply chain stability, seriously affect China-Canada economic and trade relations, and harm the interests of companies in both countries." According to data from Statistics Canada, imports of Chinese electric vehicles surged from 100 million Canadian dollars (98.2 billion KRW) in 2022 to 2.2 billion Canadian dollars (2.16 trillion KRW) last year.

Earlier, major foreign media outlets reported that Canada plans to impose tariffs of 100% on Chinese electric vehicles and 25% on steel and aluminum. This move is interpreted as an effort to align with Western allies such as the United States and the European Union (EU), who have announced additional tariffs on Chinese electric vehicles.

The EU plans to impose tariffs of up to 46.3% on electric vehicles produced in China starting around November. The United States has also announced plans to raise tariffs on Chinese electric vehicles from 25% to 100%.