Canada is hiking tariffs on Chinese-made EVs, steel

Canada is poised to impose higher tariffs on Chinese-made electric vehicles (EVs) and Chinese steel, Prime Minister Justin Trudeau announced in Halifax on Monday.

During the Liberal cabinet retreat, Trudeau stated, "We will soon be introducing a 100 percent tariff on Chinese-made electric vehicles and a 25 percent tariff on Chinese steel and aluminum." He explained that these measures aim to encourage EV manufacturing within Canada.

This move aligns Canada with recent U.S. trade policy shifts. In mid-May, President Joe Biden announced an increase in tariffs on Chinese EVs from 25 percent to 100 percent, although currently, only one Chinese EV is available in the U.S.

In June, Finance Minister Chrystia Freeland expressed concerns about "unfair" Chinese trade practices in the EV manufacturing sector and initiated a consultation process to explore potential responses.

While Trudeau did not provide additional details, Freeland had previously outlined potential measures under consideration.

"The possible policy actions we are consulting on include a surtax on imports of Chinese EVs under Section 53 of the Customs Tariff Act, changes to the eligibility criteria for the federal Zero Emissions Vehicle Program incentives, and potentially broader investment restrictions in Canada," Freeland said in June.

At present, the only Chinese-made EVs imported into Canada are Teslas manufactured at the company's Shanghai factory.