Canada Imposes Striking Tariffs on Chinese EVs and Metals

Canada is set to impose a 100% tariff on imports of Chinese electric vehicles and a 25% tariff on steel and aluminum from China, effective from Oct. 1. By aligning with the U.S. and EU, this move counters China's overcapacity policy. However, the Chinese embassy in Canada has condemned the action, labeling it as protectionist and contrary to WTO rules.

Canada, in step with the United States and European Union, announced on Monday a 100% tariff on Chinese electric vehicle imports and a 25% tariff on imported steel and aluminum from China. A Canadian government official confirmed that the duties will affect all EVs shipped from China, including those manufactured by Tesla.

Shares of Tesla, the globally most valuable automaker, dropped by 3.2% following the announcement. Canadian imports of Chinese automobiles surged by 460% year-over-year in 2023, with volumes reaching 44,356 units as Tesla began exporting EVs made in Shanghai to Canada.

Prime Minister Justin Trudeau explained that the tariffs are meant to counteract China's state-directed policy of overproduction. The tariffs will be implemented starting October 1 and are in concert with similar measures by other global economies. Meanwhile, the Chinese embassy in Canada criticized the move as protectionist and a violation of WTO rules, cautioning that it could harm Canadian consumers and businesses.