Canada is set to impose a 100% tax on electric cars made in China starting October 1, following similar moves by the US and the European Union, according to BBC. Canada will also place a 25% duty on Chinese steel and aluminum.
This decision comes amid concerns that China is unfairly subsidizing its EV industry, which Canada and its Western allies argue gives Chinese car makers an advantage.
Canadian Prime Minister Justin Trudeau stated that the goal is to make Canada a global leader in automotive innovation, but he criticized China’s practices as “unfair” in the global market. China’s reaction has been to label these actions as “trade protectionism” and a violation of World Trade Organization rules.
The new tariffs will affect various Chinese electric vehicles, including those made by Tesla in Shanghai. Tesla might try to negotiate or shift its Canadian imports to factories in the US or Europe due to these new tariffs.
Chinese car brands, though not yet common in Canada, are making efforts to enter the market. China, being the world’s largest EV manufacturer, has rapidly gained a large share of the global market, making these tariffs significant.
Credit : BBC
https://www.bbc.com/news/articles/cm2n091v4m5o