Canada’s new tariff on Chinese electric vehicles came into effect on October 1, in response to Beijing’s threat to ban Canadian canola. Trade Minister Mary Ng stated that the government is now seeking to redirect canola exports to Indo-Pacific markets.
Under the new regulations, a 100 percent tariff will be applied to all Chinese-made EVs imported into Canada, including certain hybrid passenger cars, trucks, buses, and delivery vans.
During an October 1 press conference in Ottawa, Ng mentioned that negotiations are underway with China and other ASEAN countries (Association of Southeast Asian Nations) to facilitate Canadian businesses’ access to these markets. She dismissed China’s anti-dumping probe and emphasized that Canadian producers adhere to fair trade practices. The decision to increase tariffs on Chinese-made EVs was made as a response against Beijing’s unfair trade practices such as state-directed overcapacity and excessive subsidization which negatively impact Canadian workers across various industries.
Ng highlighted that Canada has never been accused of dumping products into global marketplaces due its commitment as a fair trading country where producers and exporters abide by tariff laws.
When questioned about Canada’s continued reliance on the Chinese canola market despite previous measures taken by the regime during the Huawei dispute, Ng explained that it is ultimately up to Canadian businesses and producers where they choose to sell their products. However, she assured that efforts are being made in collaboration with the industry towards expanding markets worldwide.
In addition to the EV tariff, Ottawa plans to impose a 25 percent tariff on Chinese steel and aluminum products starting from October 22nd.
