Unsplash/Michael Fousert
Ministers Freeland and Ng unveil plans to protect the Canadian EV supply chain.

Finance Minister Chrystia Freeland announced the Canadian government will launch consultations to examine policy responses to protect the nation’s burgeoning electric vehicle industry from Chinese competition.

At a press conference in Vaughn, Ontario at a car parts plant, Freeland said the consultations will examine the possibility of adding a surtax on Chinese vehicles as well as investment restrictions and adjustments to the federal government’s consumer subsidy program. The consultations will start July 2 and last 30 days.

“Canadian workers and the auto sector are facing an intentional, state-directed policy of overcapacity, undermining the Canadian EV sector’s ability to compete in domestic and global markets,’’ Freeland said in a statement. “This consultation will consider what action we can take to protect our workers, level the playing field, and prevent transshipment or oversupply from China’s anti-competitive practices.”

The announcement comes after the U.S. and the European Union announced similar tariffs against Chinese electric vehicles.