Canada has announced a significant increase in tariffs on electric vehicles (EVs) originating from China. Effective October 1, a 100 percent tariff will be imposed on all EVs shipped from China, including passenger cars, trucks, buses, and vans. This substantial increase is in addition to the existing 6.1 percent tariffs currently levied on Chinese-made EVs.
Furthermore, starting October 15, Canada will implement a 25 percent tariff on Chinese steel and aluminum imports. This measure targets not only Chinese automakers but also American and European firms that manufacture EVs in China, such as Tesla, BMW, and Volkswagen. The impact of these tariffs was highlighted by a 460 percent year-on-year increase in Canadian imports of automobiles from China to Vancouver in 2023, coinciding with Tesla's shipment of Shanghai-made EVs to Canada.
Experts suggest that Canada's decision reflects a more protectionist trade policy, particularly in its relations with China. These measures could have long-term implications for Canada's economic and trade interests, its international image, consumer welfare, environmental protection goals, and the stability of global industrial and supply chains. Western media largely view Canada’s actions as aligning with U.S. trade policies, aiming to encourage companies to move their factories back to the Americas through strategies like \"nearshore outsourcing\" and \"friendly shore outsourcing.\"
Despite the aggressive tariff measures, there is skepticism about their effectiveness in enhancing the competitiveness of Canada's auto manufacturing industry. Preliminary assessments indicate that these tariffs may not significantly curb the influx of Chinese EVs into the Canadian market. The Chinese EV industry has shown low levels of concern regarding the tariffs, with many Chinese automakers planning to expand their manufacturing and supply chains in response to the new trade barriers.
Reference(s):
cgtn.com
