Canada reviews Chinese electric vehicle tariff following US move

OTTAWA — Prime Minister Justin Trudeau and his trade and industry ministers say Canada is investigating the notion of raising tariffs on electric vehicles imported from China, after a massive tax hike by the Americans earlier this month.

Chinese brands are not a major player in Canada’s electric vehicle market, but Chinese imports have exploded in the past year as Tesla switched from US factories for Canadian sales to its factory in Shanghai.

In 2022, Canadian trade data shows $84 million in electric-only vehicle imports from China, rising to $2.2 billion in 2023.

President Joe Biden is quadrupling import duties on electric vehicles made in China to 100 percent this year because of what he called unfair subsidies to Chinese electric vehicle manufacturers by the Chinese government.

Last fall, the European Commission launched an investigation into China’s unfair trade practices as Chinese-made electric vehicles quickly increased market share in Europe.

Currently, Chinese electric vehicle brands are not available for sale in Canada, but Chinese automakers are eyeing the North American market.

This report by The Canadian Press was first published on May 26, 2024.

The Canadian Press