Canadian Prime Minister Trudeau announced on Monday (August 26) in Halifax, Nova Scotia that Canada will impose a 100% tariff on electric vehicles manufactured in China and a 25% tariff on Chinese steel and aluminum.
This statement aligns Canada with recent changes in trade policies similar to those of the United States. In May, the U.S. announced an increase in tariffs on Chinese electric cars from 25% to 100%.
During a series of economic and diplomatic relationship meetings held on Monday in Halifax with other cabinet members, Trudeau announced the tariffs on China. Ministers are meeting to outline the strategic plans for the upcoming year.
Trudeau stated that this move is aimed at boosting Canada’s electric vehicle manufacturing industry.
“Shortly, we will be imposing a 100% tariff on electric cars manufactured in China and a 25% tariff on Chinese steel and aluminum,” Trudeau said.
The additional tariffs on Chinese electric vehicles will take effect on October 1st. The tariffs will also include certain types of hybrid passenger cars, trucks, buses, and delivery vehicles. The Canadian government, in a press release, mentioned that these tariffs will be added to the existing 6.1% tariff on Chinese electric vehicles.
The tariffs on aluminum and steel will become effective on October 15th. The Canadian government released a preliminary list of goods on Monday, and the public will have an opportunity to provide feedback before the finalization on October 1st.
Trudeau emphasized that the goal is to provide a fair competitive environment for Canadian workers and allow the emerging electric vehicle industry in Canada to compete domestically, in North America, and globally.
The Canadian government stated that the automotive manufacturing industry directly provides over 125,000 well-paying jobs in Canada, many of which are unionized, and the potential of our electric vehicle supply chain ranks highly globally. Similarly, Canada’s steel and aluminum industries provide over 130,000 jobs nationwide.
“However, Canadian auto workers and the automotive industry are currently facing unfair competition from Chinese manufacturers, who benefit from unfair non-market policies and practices,” the statement said. “China’s deliberate, government-led overcapacity policies and lack of strict labor and environmental standards threaten workers and businesses in the global electric vehicle industry and undermine Canada’s long-term economic prosperity. Recent negotiations with stakeholders confirmed the need for special measures to address this specific threat.”
On Sunday, White House National Security Advisor Sullivan met with Trudeau in Canada before his visit to China. Shortly after this meeting, Trudeau made the announcement of the tariffs on China.
The European Union began imposing tariffs on electric cars produced in China from July 5th. Among them, Tesla produced in China is taxed at 9%. The tax rate for BYD is 17%, Geely is 19.3%, and SAIC Group is 36.3%.