Canada is considering imposing a surtax on Chinese-made electric vehicles to counter the global oversupply caused by Chinese companies. A 30-day consultation starting on July 2 will gather input on China’s surging EV exports and unfair market practices, labor, and environmental standards driving them.
Deputy Prime Minister Chrystia Freeland highlighted the need to protect Canadian jobs in the automotive sector, which supports nearly 550,000 jobs. The consultation will also explore changes to the federal EV purchase rebate and investment restrictions in Canada.
Canada’s action aligns with the United States and the European Union to avoid becoming a dumping ground for Chinese oversupply. U.S. President Joe Biden has raised concerns about Chinese government subsidies giving Chinese companies an unfair advantage in global trade.
Currently, only Tesla’s Chinese-made EVs are imported into Canada. The consultation aims to address the challenges faced by Canadian workers and the auto sector due to China’s overcapacity policies, ensuring fair competition in domestic and global markets.
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