'Canada Mulls Tariffs on Electric Vehicles imported from China'

Money | June 24, 2024, 3:34 p.m.

Canada is considering imposing import tariffs on Chinese-made electric vehicles, as Deputy Prime Minister Chrystia Freeland believes China's overcapacity policy is harming the domestic car sector. Public consultations will be held for 30 days starting July 2 to gather opinions on how Canada should respond to this issue. Freeland stated that Chinese producers are flooding the global market with electric vehicles, undercutting producers worldwide, including those in Canada. The potential tariffs align with actions taken by the United States and the European Union against Chinese imports. China denies unfair practices, claiming its EV industry growth is due to technological advantages. A Chinese state-backed publication warns Canada against sacrificing economic ties with China for the U.S.' strategic interests. Prime Minister Trudeau's government aims to position Canada in the global EV supply chain and has faced pressure to act against Chinese EVs, particularly from Ontario's premier. The government is considering all options, including tariffs on electric vehicle components, to protect jobs and promote Canadian manufacturing.