Canada Imposes Stiff Tariffs on Chinese Electric Vehicles and Metals

Canada announced a 100% tariff on Chinese electric vehicles and a 25% tariff on Chinese steel and aluminum imports. The move, aligned with U.S. and EU actions, aims to counter China's over-capacity policies. The tariffs will take effect on Oct. 1, significantly affecting Tesla and trade relations with China.

Canada has aligned with the United States and European Union in imposing stringent tariffs on Chinese imports. Effective October 1, a 100% tariff will apply to Chinese electric vehicles, and a 25% tariff will be levied on steel and aluminum from China. Canadian officials confirmed that the duties would encompass Tesla models imported from Shanghai.

The stock market reacted swiftly, with shares of Tesla dropping by 3.2%. Tesla began shipping Chinese-made EVs to Canada's largest port in Vancouver in 2023, with imports soaring 460% year-over-year to 44,356 vehicles. Prime Minister Justin Trudeau stated that these measures aim to counteract China's state-directed policy of over-capacity.

China's Commerce Ministry criticized Canada's move, arguing it would disrupt global supply chains and violate World Trade Organization rules. Despite this, Trudeau emphasized that the tariffs are part of a coordinated global effort to ensure fair market practices.

(With inputs from agencies.)