Canada Imposes Tariffs on Chinese Electric Vehicles

Canada will implement a 100% tariff on Chinese-made electric vehicles and a 25% tariff on steel and aluminum imports starting October 1, 2023, as announced by Prime Minister Justin Trudeau. This decision aligns Canada with similar U.S. initiatives aimed at protecting domestic industries from what Trudeau termed 'unfair competition' resulting from Chinese state subsidies. The tariffs are seen as a response to the significant increase in Chinese EV exports to Canada, which surged to $2.2 billion in 2023 from less than $100 million the previous year. Trudeau's government has been under pressure to safeguard Canadian jobs in the auto sector, which is heavily reliant on exports to the U.S. The move follows a cabinet meeting where the impact of U.S. trade policies was discussed, highlighting the interconnectedness of Canadian and American economies. Finance Minister Chrystia Freeland has previously emphasized the need for stronger trade measures against Chinese vehicle exports to ensure fair competition.