Canada Considers Tariffs on Chinese Electric Vehicles Amid Overcapacity Concerns
Deputy Prime Minister Chrystia Freeland recently announced that Canada is exploring the possibility of imposing import tariffs on Chinese-made electric vehicles due to concerns of unfair competition stemming from China’s strategy of global oversupply. The country plans to seek public opinion on the matter with a 30-day consultation period starting on July 2.
Freeland emphasized that Chinese producers are intentionally flooding the market with electric vehicles, undercutting manufacturers globally, including those in Canada. This move aligns with actions taken by the United States and the European Union, which have also imposed tariffs on Chinese-made EVs.
While China denies allegations of overcapacity and unfair subsidies, Canada faces pressure domestically to protect its car sector. Prime Minister Justin Trudeau’s government aims to position the country as a key player in the EV supply chain by attracting investments in Ontario.
As Ottawa considers its response, Freeland stressed that all options, including tariffs on EV components, are being weighed. The outcome of the public consultations will determine the government’s next steps in combating the challenges posed by China’s electric vehicle industry.