Canada targets China-made EVs, including Tesla

Canada will impose 100% tariffs on China-made EVs from October 1 this year.

This follows similar moves from the US which expects to implement tariffs in September and the European Union (EU).

Canada says it will also impose a 25% tariff on imported steel and aluminium from China.

The duties apply to all EVs shipped from China which would include those made by Tesla, a Canadian government official says, according to Reuters.

It says Canadian automobile imports from China to its largest port, Vancouver, jumped 460% year-over-year in 2023, when Tesla started shipping Shanghai-made EVs to Canada.

Prime Minister Justin Trudeau says more punitive measures are possible, which may include China-made solar products and lithium-ion batteries.

China is Canada’s second-largest trading partner.

Reuters says the EU softened its stance on Tesla this month when it imposed tariffs on Chinese-imported EVs and imposed a rate of 9% for Tesla, lower than the up to 36.3% it had imposed on other Chinese EV imports.

The Canadian Vehicle Manufacturers’ Association (CVMA) president and chief executive Brian Kingston welcomes the Canadian government’s step, saying it’s supporting the “significant investment” in the hundreds of thousands of jobs in the Canadian automotive industry and aligns the country with the US.

He says he looks forward to additional details emerging.