Canada to impose 100% tariff on Chinese electric vehicles, including Teslas

Canada has announced plans to impose a 100% tariff on electric vehicles (EVs) imported from China, including those manufactured by Tesla. This move, which follows similar actions by the United States and European Union, is set to take effect on October 1.

The Canadian government also revealed a 25% tariff on imported Chinese steel and aluminium, escalating trade tensions between the two nations. Prime Minister Justin Trudeau stated that these measures are a response to what he described as China’s “intentional, state-directed policy of over-capacity.”

“China is not playing by the same rules,” Trudeau commented during a press briefing in Halifax, Nova Scotia. He stated that Canada is taking these steps “in alignment and parallel with other economies worldwide,” highlighting the global effort to counter China’s economic strategies.

The impact of this announcement was immediate, with Tesla’s shares closing down 3.2% following the news. The tariffs are expected to affect all EVs shipped from China, which has increased automotive exports to Canada. In 2023 alone, imports of automobiles from China to Vancouver surged by 460%, totalling 44,356 vehicles, largely due to Tesla’s shipments from its Shanghai factory.

China’s Commerce Ministry quickly condemned Canada’s decision, warning that it “will disrupt the stability of global industrial and supply chains” and “seriously undermine the global economic system and trade rules.”

The new tariffs show growing concerns over protectionism and the potential for further punitive measures, as Canada and its allies seek to address perceived imbalances in trade practices with China.

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