Canada is set to impose new tariffs on Chinese-made electric vehicles, aluminum, and steel, aligning with Western allies and taking steps to protect domestic manufacturers. The government this morning announced a 100% levy on electric cars and 25% on steel and aluminum from China.
Prime Minister Justin Trudeau unveiled the policy in Halifax, Nova Scotia, during a cabinet meeting focused on the economy and foreign relations. This move follows similar actions by the United States and the European Union to erect higher tariff walls against Chinese imports.
The changes follow Trudeau just weeks ago berating Conservative MP and party leader Pierre Poilievre for suggesting the implementation of such tariffs, stating that “so [Poilievre] to suddenly turn around and say ‘oh we’re worried about EV’s’, thats bologna. He’s looking for a political angle because that’s all he does.”
Finance Minister Chrystia Freeland has been a prominent advocate for a tougher approach to Chinese vehicle exports and closer trade alignment with the U.S. In June, she announced a public consultation on measures to restrict Chinese EV sales in Canada, citing “unfair competition from China’s intentional, state-directed policy of overcapacity”.
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The Canadian auto sector, which exported the majority of its 1.5 million light vehicle production to the U.S. last year, has been pushing for increased tariffs to protect domestic jobs and wages. The government has also invested heavily in EV plants and battery factories from allied countries.
China’s EV exports to Canada surged to $2.2 billion in 2023, up from less than $100 million in 2022. While Tesla’s Model Y shipments from Shanghai contributed to this increase, the government’s main concern is the potential influx of cheaper cars from Chinese automakers.
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