Canada Joins US With 100% Tariff on Chinese EVs

Canada is implementing a 100% tariff on electric vehicles (EVs) produced in China, the country’s finance department said Monday.

The tariffs are meant to combat the “extraordinary threat” China poses to the global EV market, due to what the Canadian government called “unfair trade practices” that include “a lack of environmental protections, and trade policies supporting oversupply.” 

The EV levy will go into effect on Oct. 1, and a 25% tariff on Chinese aluminum and steel products will begin on Oct. 15. 

Canada ‘Committed To Levelling the Playing Field’

“The Government of Canada is committed to levelling the playing field for Canadian workers, businesses and key sectors currently facing unfair competition during this period of significant investment and transformation,” Minister of Export Promotion Mary Ng said.  

“Global trade rules are not always adequate to protect against the type of non-market behaviour we have witnessed from China in this sector,” Ng added. 

US, EU Also Have Tariffs on Chinese EVs

Canada’s move brings it in line with the U.S., which upped tariffs on Chinese EVs to 100% from 25% in May. The changes are projected to affect around $18 billion in current annual imports from China, the White House said.

Last week, the European Commission (EC), the European Union’s (EU) enforcement arm, announced updated tariffs on Chinese-made EVs, with Tesla’s (TSLA) cut significantly from a provisional rate announced in July. On top of an existing 10% tariff for Chinese imports, China-made Tesla vehicles will face a 9% tariff, while competitors BYD (BYDDY), Volvo parent Geely (GELYF), and state-owned SAIC will have to pay tariffs of 17%, 19.3%, and 36.3%, respectively.