Canada is now mulling the possibility of placing tariffs on China-made electric vehicles, becoming the most recent country to consider a potential tax on EVs that come from the world’s largest automotive market.
The European Union and the United States have made similar moves in an effort to prioritize domestic manufacturing efforts and attempt to woo consumers to buy vehicles in a local market.
China is one of the most prominent manufacturers of EVs, as it has many companies offering cars for prices that are, in many cases, a fraction of what other countries and regions can offer.
The EU has considered getting rid of the tariffs before they even begin, as new reports suggest that officials from both sides have talked about abandoning the additional tax before its planned enforcement date of July 4.
Canada is now considering adding tariffs to those vehicles that are imported from China. A report from Reuters said that Deputy Prime Minister Chrystia Freeland said on Monday that it would consider tariffs on China-made EVs as she called the country’s “state-directed policy of overcapacity” a factor of unfair competition:
“Chinese producers are quite intentionally generating a global oversupply that undermines EV producers around the world, including here in Canada.”
Just last week, Doug Ford, the Premier of Ontario, said the country could consider the option of ” immediately match[ing] or exceed[ing] U.S. tariffs on Chinese imports, including at least a 100 percent tariff on Chinese electric vehicles.”
Ford said:
“Taking every advantage of low labor standards and dirty energy, China is flooding the market with artificially cheap electric vehicles. Unless we act fast, we risk Ontario and Canadian jobs.”
For comparison, the EU is considering duties of up to 38.1 percent on Chinese EVs, in addition to the 10 percent import tax that already applies to vehicles.
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