Trudeau Hits Chinese EV Imports with 100% Tariff, Matching US in Protecting North American Auto Industry

• Sep 01, 2024

Canadian Prime Minister Justin Trudeau has announced a 100% tariff on Chinese electric vehicle (EV) imports, matching a similar move by the United States. The measure is aimed at preventing a flood of Chinese state-subsidized vehicles into the North American market.

Trudeau accused China, one of the world's major EV exporters, of "not playing by the same rules as other countries" when it comes to environmental and labor norms. In addition to the EV tariff, the Prime Minister also announced a 25% tariff on Chinese steel and aluminum imports.

The Canadian government's policy is aimed at protecting the country's auto manufacturing industry, which employs over 125,000 people. Ottawa has invested billions of dollars to help the industry transition to electric vehicles and establish a domestic electric battery supply chain, similar to the incentives provided in the US Inflation Reduction Act.

"China's EV overproduction and generous state subsidies for the auto sector require us to take action," Trudeau said at a news conference in Halifax.

The new EV surtax, which will be added to the existing 6.1% import tax, will take effect on October 1 and will apply to Chinese electric and hybrid passenger vehicles, trucks, buses, and delivery vans. Additionally, Ottawa will limit the eligibility for EV subsidies to vehicles manufactured in countries with which Canada has free trade agreements, excluding China.

The steel and aluminum tariffs will be implemented on October 15, further strengthening Canada's efforts to protect its domestic industries from unfair Chinese competition.

This move by Trudeau mirrors similar actions taken by the United States and the European Union, which have also implemented tariffs on Chinese EV imports in recent months. The goal is to create a level playing field and prevent the influx of state-subsidized Chinese vehicles into the North American and European markets.

The Canadian government's stance on this issue highlights the growing concerns over China's practices in the global auto industry and the need for coordinated action to protect domestic manufacturing and jobs.