China is urging Canada to comply with the World Trade Organization’s (WTO) rules regarding electric vehicle (EV) imports.
Last month, Canada’s Department of Finance announced the Government’s intention to impose a 100% tax on China-made EV imports, effective October 1, 2024. The 100% surtax will apply to fully electric vehicles and some hybrid cars made in China. The Canadian Government will also implement a 25% surtax on steel imports and aluminum products from China, effective October 15, 2024.
China has pushed back on Canada’s plans, claiming it is ignoring WTO rules and violating commitments to the organization.
“[This] is a classic unilateral and trade protectionist act that seriously damages the rules-based multilateral trading system and disrupts global industrial and supply chains for EVs as well as steel and aluminum products,” said a spokesperson from China’s Ministry of Commerce.
“China fully opposes this…We urge Canada to abide by WTO rules and immediately correct its erroneous practices.”
China expressed similar sentiments about the European Commission’s import tariffs on Chinese-made EVs. It filed an appeal with the WTO over the EU’s EV import tariffs.
The Commission’s import tariffs for EVs made in China are significantly lower than those that will be imposed in Canada and the United States. In July, the Commission applied up to 38% provisional tariffs on Chinese EV imports. It recently reduced the maximum tariffs on EV imports made in China to 37.6% and set new individual tax rates for a few automakers, including Tesla and Volkswagen.
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