Canada to implement 100% tariff on Chinese EVs, including Teslas

The Chinese embassy in Canada responded sharply to the announcement, criticising the tariffs as “protectionist” and a “politically dominant act.”

In a decisive move aligning with actions taken by the United States and the European Union, Canada announced on Monday that it will impose a 100% tariff on all electric vehicles (EVs) imported from China, including those produced by Tesla. The Canadian government also revealed a 25% tariff on imported steel and aluminum from China, effective October 1.

The new tariffs will significantly impact the automotive industry, with shares of Tesla, the world’s most valuable automaker, falling by 3.2% following the announcement. The decision comes in response to a dramatic surge in Chinese automobile imports to Canada’s largest port, Vancouver, which saw a 460% increase in 2023. This uptick coincided with Tesla's commencement of shipping EVs from Shanghai to Canada.

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Prime Minister Justin Trudeau defended the tariffs, stating they are necessary to address what he described as China’s deliberate over-capacity in the market. "We are acting to counter China's state-directed policy and its disregard for international trade norms," Trudeau told reporters. He emphasised that Canada's move is part of a coordinated global effort, aligning with similar measures by other major economies.

The Chinese embassy in Canada responded sharply to the announcement, criticising the tariffs as “protectionist” and a “politically dominant act.” The embassy's spokesperson accused Canada of violating World Trade Organisation (WTO) regulations and warned that the tariffs would damage trade relations between the two countries, ultimately harming Canadian consumers and businesses.

The tariffs mark a significant escalation in trade tensions between Canada and China, reflecting growing international concerns about fair trade practices and market access.