Canada is considering following the United States in raising tariffs on imported electric vehicles from China, according to a statement by Canadian Minister of Trade, Mary Ng.
At the Asia-Pacific Economic Cooperation Forum meeting in Peru, Ng stated in an interview with Bloomberg, “We are seriously studying this issue and engaging in open dialogue with our American partners.”
The Biden administration announced new tariffs on Chinese imports this week, affecting seven major product categories including steel, aluminum, semiconductors, batteries, critical minerals, solar panels, ship-to-shore cranes, and medical products.
One of the new tariffs imposed is on Chinese-made electric vehicles, set to come into effect this year with a total tax rate jumping significantly from the current 27.5% to 102.5%.
Currently, Canada imposes only a small tariff of around 6% on Chinese automobiles. When asked about the possibility of aligning with the U.S. policy and raising import tariffs, Ng mentioned that Canada is communicating with U.S. officials regarding this policy.
“We will definitely take that into consideration,” she said.
Ng emphasized that Canada’s focus is on domestic production of electric vehicles. She highlighted that the Trudeau government has signed agreements with manufacturers such as Honda and Volkswagen to produce electric vehicles, batteries, or parts in Ontario, the most populous province in Canada.
The close integration of parts and finished vehicles between Ontario and the U.S. states of Michigan and Ohio has made cross-border movement seamless.
In recent years, there has been a surge in imports of Chinese-made electric vehicles into Canada, particularly Tesla models manufactured in Shanghai.
Last year, the number of Chinese-made Teslas arriving at the port of Vancouver increased by over five times, reaching 44,400 vehicles.
This situation has prompted protests from some in the automotive industry who are advocating for Canada to follow the U.S. in taking more measures to protect domestic industries.