TORONTO (AP) — Canada’s government is imposing a 100% tariff on imports of Chinese-made electric vehicles that matches U.S. tariffs.
Prime Minister Justin Trudeau also announced Monday there will be a 25% tariff on Chinese steel and aluminum.
“Actors like China have chosen to give themselves an unfair advantage in the global marketplace,” Trudeau said at a cabinet retreat in Halifax, Nova Scotia.
Trudeau’s government began 30-day consultation on the issue earlier this summer to counter what Deputy Prime Minister Chrystia Freeland has said is a clear effort by Chinese companies to generate a global oversupply.
Canada’s move comes weeks after both the United States and the European Commission announced plans to impose higher import tariffs on Chinese EVs.
U.S. national security advisor Jake Sullivan encouraged Canada to do the same during a meeting with Trudeau and cabinet minister at a cabinet retreat in Halifax, Nova Scotia on Sunday.
Right now the only Chinese-made EVs imported into Canada are from Tesla, made at the company’s Shanghai factory. There are no Chinese-branded EVs sold or imported at the moment.
Freeland has said Canada will act in concert with its allies in the United States and the European Union as North America has an integrated auto sector. Freeland has said her government would ensure Canada doesn’t become a dumping ground for Chinese oversupply.
U.S. President Joe Biden has said Chinese government subsidies for EVs and other consumer goods ensure that Chinese companies don’t have to turn a profit, giving them an unfair advantage in global trade.
Chinese firms can sell EVs for as little as $12,000. China’s solar cell plants and steel and aluminum mills have enough capacity to meet much of the world’s demand, with Chinese officials arguing their production keeps prices low and would aid a transition to the green economy.