Trudeau to impose 100% tariffs on Chinese EVs

CREDIT: Michael Fousert/Unspash

Prime Minister Justin Trudeau’s government, moving to align itself with U.S. policy, said it would impose new tariffs later this year on Chinese-produced electric vehicles.

Canada will impose a 100 per cent levy on electric cars and 25% on steel and aluminum, Trudeau said at a press conference in Halifax, N.S., where his Liberal Party is holding a cabinet retreat.

The vehicle surtax becomes effective on Oct. 1, according to a statement posted on the finance department’s website. The surtax, which will apply to electric and certain hybrid passenger automobiles, trucks, buses and delivery vans, will be on top of a current import tariff of 6.1 per cent.

The 25 per cent surtax on imports of steel and aluminum products from China will take effect Oct. 15. The government released an initial list of affected goods, with a final list expected by Oct. 1.

“This measure aims to protect Canada’s workers from China’s unfair trade policies and to prevent trade diversion resulting from recent actions taken by Canadian trading partners,” according to the release.

The government also launched a new 30-day consultation to look at other sectors, including batteries and battery parts, semiconductors, solar products and critical minerals. It also said the government plans to limit consumer incentives to electric vehicle products “made in countries which have negotiated free trade agreements with Canada.”

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