Canada Announces Tariffs on Chinese Electric Vehicles and Metals

Canada will impose a 100% tariff on Chinese electric vehicles and a 25% tariff on imported steel and aluminum from China, in alignment with the U.S. and other global economies. Prime Minister Justin Trudeau aims to counter China's state-directed policy of over-capacity and protect domestic industries.

Canada, in alignment with the United States and other global economies, announced on Monday a 100% tariff on the import of Chinese electric vehicles and a 25% tariff on imported steel and aluminum from China. Prime Minister Justin Trudeau stated that this measure aims to counter China's intentional, state-directed policy of over-capacity.

Trudeau remarked, "I think we all know that China is not playing by the same rules." The tariffs will take effect on Oct. 1 this year. He emphasized the importance of acting in parallel with other economies, speaking during a three-day closed-door cabinet meeting in Halifax, Nova Scotia.

Data from Canada's largest port in Vancouver shows a 460% annual jump in automobile imports from China in 2023, following Tesla's shipping of Shanghai-made EVs to Canada. Trudeau also indicated that Ottawa is examining additional punitive measures like tariffs on chips and solar cells. This move comes amid significant pressure from domestic industry to defend the market with Canadian innovation.

(With inputs from agencies.)