Canada is in the midst of a heated debate on whether to impose import tariffs on Chinese-made electric vehicles (EVs). Deputy Prime Minister Chrystia Freeland announced that the government will seek the public’s opinion on this matter, opening a 30-day consultation period starting July 2.
Freeland highlighted the unfair competition faced by Canada’s domestic car sector due to what she referred to as China’s “state-directed policy of overcapacity.” She believes that Chinese producers are intentionally generating a global oversupply, undermining EV producers worldwide, including those in Canada.
The premier of Ontario recently urged Ottawa to impose tariffs on Chinese-made EVs to protect jobs. This move comes amidst growing pressure for Canada to align its China trade policy with other G7 allies. While Trudeau faces tensions domestically on this issue, he has been cautious in hiking tariffs on China, considering the country’s significant trade relationship.
As the debate continues, concerns have been raised by environmentalists about the potential impact of higher tariffs on EV prices and consumer adoption of cleaner technology. Despite the surge in Chinese EV imports to Canada, most come from Tesla’s Shanghai factory.
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