Prime Minister Justin Trudeau’s government is considering options to deter Chinese-made electric vehicles from entering the Canadian market. This includes imposing tariffs on imported vehicles and blocking Chinese investment in new Canadian factories.
The consultation paper released by Trudeau’s government suggests that tariffs may only apply to finished vehicles and not to batteries or components. The formal consultations will run until August 1, seeking feedback from stakeholders including trade unions and automotive industry groups.
Canada is concerned about the influx of Chinese EVs due to unfair policies like subsidization and low production costs. The consultation paper also seeks feedback on potential tariff rates for different vehicle classes and how tariffs might impact EV affordability.
Additionally, the document explores the possibility of Chinese companies establishing EV manufacturing facilities in Canada. It also asks for feedback on further policy guidance related to transactions and investments from Chinese sources in the Canadian EV supply chain.
Canada’s move to consider tariffs aligns with actions taken by the US and the EU to address the growing presence of Chinese EVs in their markets.
While Canadian imports of Chinese EVs have increased, they mainly consist of Tesla vehicles produced in China. The government has not disclosed whether tariffs would apply to Tesla imports.