Canada Imposes 100% Duty on Chinese Electric Vehicles, Tesla's Tariff Appeal Revealed

Canada has implemented a 100% duty on Chinese-made electric vehicles, including those from Tesla. The automaker sought a lower tariff from Ottawa, but faced rejections. This move follows a similar U.S. policy aimed at countering China's over-capacity strategy. The impact on other carmakers like Volvo and Polestar is being evaluated.

Canada announced this week it will impose a 100% duty on Chinese-made electric vehicles, following a request from Tesla to lower tariffs, according to a Canadian government source.

Ottawa's new tariffs, effective October 1, align with U.S. measures against China's state-directed over-capacity policy. These duties impact all Chinese EVs, including Tesla models exported from Shanghai to Canada.

While the European Union imposed a lesser 9% tariff on Tesla's Chinese exports, Canada and the U.S. included a broader range of economic policies in their calculations. Tesla has not commented further since the announcement, and Canada's Finance Ministry remains mum on specifics.

The implications extend beyond Tesla, as Volvo Cars and Polestar also depend on Chinese manufacturing for some models exported to Canada. As stakeholders assess the new tariffs' impact, U.S. tariffs on similar goods are also set to increase but may be adjusted this week.