Canada seeks advice for potential tariffs on Chinese EV imports

(Credit: Tesla)

Canada is seeking advice for its potential tariffs on electric vehicle (EV) imports from China. On July 2, 2024, the Canadian government opened a 30-day public consultation period about tariffs for China-made EV imports. 

The public consultation suggests that Canada will follow the United States and Europe’s lead on Chinese EV imports. In May, US President Joe Biden announced increased tariffs on Chinese imports, including electric vehicles. The United States implemented the highest tariffs on Chinese EV imports, increasing it by up to 100%. 

Shortly after the United States launched tariffs on China-made imports, the European Commission announced increased tariffs for Chinese EV imports. In Europe, tariffs for China-made electric vehicles increased by up to 38.1%.

Canada has been mulling over potential tariffs for China-made EVs since June. 

“Chinese producers are quite intentionally generating a global over-supply that undermines EV producers around the world, including here in Canada,” said Deputy Prime Minister Christie Freeland.  

Europe claims that high state subsidies in China have contributed to overcapacity. Chinese EV automakers have been accused of undervaluing their goods, flooding Western markets, and undercutting competition. 

China has denied accusations of an overcapacity problem and unfair state subsidies. Chinese analysts warned Ottawa against disrupting trade ties with China. 

“China and Canada have no disagreement in jointly tackling climate change with the latest technologies and new means of transportation, and it is in the interest of the two countries to actively engage in cooperation wherever possible and seek win-win results,” Lü Xiang, a research fellow from the Chinese Academy of Social Sciences, told the Global Times.

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Canada seeks advice for potential tariffs on Chinese EV imports
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