Canadian Prime Minister Justin Trudeau announced that Canada is taking steps to become a global leader in the automotive sector by building the “vehicles of tomorrow.”
However, he also accused China of giving itself “an unfair advantage in the global marketplace.”
In response, Canada will impose new tariffs on Chinese electric vehicles (EVs) starting October 1, and additional duties on Chinese steel and aluminum from October 15.
A spokesperson from China’s Commerce Ministry criticized Canada’s actions, stating they “seriously undermine the global economic system and economic and trade rules.”
The spokesperson urged Canada to “immediately correct its erroneous practices.”
China is Canada’s second-largest trading partner, after the United States.
The move follows similar actions by other countries; in May, the US announced it would quadruple its tariffs on Chinese EVs to 100%. The European Union also plans to impose tariffs of up to 36.3% on China-made EVs.
The Canadian tariffs will affect all Chinese-made EVs, including those manufactured by Tesla at its Shanghai factory.
Mark Rainford, a car industry commentator based in China, suggested that Tesla might lobby the Canadian government for exemptions. If unsuccessful, Tesla might consider shifting its Canadian imports to factories in the US or Europe, as Canada is its sixth-largest market this year.
Recently, the EU reduced its planned extra tariffs on China-made Teslas after further investigations requested by Tesla.
While Chinese car brands are still rare in Canada, some companies, like BYD, are beginning to enter the market. China is the world’s largest producer of EVs and has quickly captured a significant share of the global market.
Meanwhile, Canada is actively working to position itself in the global EV industry, securing billion-dollar deals with major European carmakers.
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