Chinese EV imports are in the crosshairs for increased tariffs in Canada following a sharp boost in importation duties on China’s electric vehicles in both the United States and the European Union.
The government of Justin Trudeau is somewhat reluctant to increase taxation on Chinese EVs considering China’s importance as a Canadian trading partner, according to the report by Bloomberg, but is yielding to demands from the U.S. and EU to follow their lead.
Justin Trudeau
Canadian environmental groups are pushing back against the idea of tariffs also, fearing that limitations placed on Chinese EV imports will slow the transition to an electrified auto market. On the opposite side of the fence, the Canadian automobile industry is strongly in favor of tariffs, arguing that cheap EVs from China threaten Canadian jobs.
Opponents of Chinese imports also accuse the foreign EVs of offering dubious environmental benefits given the Asian country’s track record of keeping costs low by using “dirty” energy and few labor or environmental safeguards. Finance minister Chrystia Freeland’s office also noted “China has an intentional, state-directed policy of overcapacity” to drive prices down and put competitors out of business.
The finance ministry opened a 30-day period for public commentary on potential Chinese EV tariffs as required by Canadian law before moving forward with any actual importation duty hikes. Currently, most of the EVs arriving in Canadian ports from China are Tesla models produced in the automaker’s Chinese factories, but the tariffs are mainly concerned with cheap, likely low-quality electric vehicles from homegrown Chinese sources.
The move comes after the Biden administration sharply increased U.S. tariffs on Chinese EVs from 25 percent to slightly more than 100 percent. The EU increased its tariffs to around 48 percent, though implementation was delayed in early June 2024, possibly to avoid distorting the outcome of elections. The U.S. is also looking to build its domestic EV battery supply chain to lessen its dependence on Chinese battery materials.
GM says it wants to avoid a price war and to have a “level playing field” in the EV market as it moves toward its eventual goal of a fully electrified vehicle lineup.
Meanwhile, a former GM chief engineer says the Chinese-made BYD Seagull is a “clarion call” to the American auto industry to start making much more affordable EVs in order to survive against their rivals from China.
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Comments
Not surprised nobody wants Chinese crap
They should reconsider their entire idea of having China as an important trade partner. At best, China is the 4th worst country on earth, behind Iran, Russia and N. Korea.
Canada has pumped billions into EV manufacturing. Tarrifs will keep the cost high for Canadians who need affordable cars by eliminating the competition.
Trudeau=Canada’s Gavin Newsome.