Canada Imposes 100% Tariff on Chinese EVs

Canada has announced a 100% tariff on Chinese electric vehicle (EV) imports, effective October 1, mirroring similar actions by the U.S. to protect its automotive industry from state-subsidized competition. Prime Minister Justin Trudeau highlighted concerns over China's environmental and labor standards, emphasizing the need to safeguard over 125,000 Canadian jobs in the automotive sector. In addition, a 25% tariff will be imposed on imports of Chinese steel and aluminum, reflecting broader efforts to ensure fair competition. The tariffs will also limit EV subsidies to vehicles from countries with which Canada has free trade agreements, excluding China. U.S. Trade Representative Katherine Tai praised Canada's actions as vital for protecting North American industries from unfair practices by the Chinese government. The new tariffs are expected to impact various manufacturers, including Tesla and Volvo, potentially raising prices for consumers and altering market dynamics in the EV sector.