Proactive Investors - Canada has announced plans to implement a 100% tariff on electric vehicles (EVs) imported from China, aligning with similar measures recently introduced by the United States and the European Union.
Its government also intends to impose a 25% duty on Chinese steel and aluminium imports, citing concerns over China's alleged subsidies that provide its industries with an unfair competitive edge in the global market.
Prime Minister Justin Trudeau stated that these actions are part of efforts to bolster Canada's position in the evolving automotive sector. The tariffs on EVs are set to take effect on October 1, followed by the metal duties on October 15.
China has criticised the decision, labelling it as "trade protectionism" and asserting that it violates World Trade Organization regulations.
The measures will impact companies like Tesla (NASDAQ:TSLA), which manufactures vehicles in its Shanghai facility for export to Canada. Industry analysts suggest Tesla may seek alternatives, such as increasing production in other countries to supply the Canadian market.
Despite the limited presence of Chinese car brands in Canada, the nation continues to pursue significant investments with European automakers to strengthen its role in the global EV industry.