Canada to impose 100% import duties on China-made EVs

Canada will implement a 100 per cent surtax on all EVs made and imported from China from 1 October. Hybrids, plug-in hybrids, and fuel cell vehicles are also included on the list - as are the Tesla Model 3 and Model Y, which are build in Shanghai.

The list is long and really includes any vehicle with at least an “electric motor as motor for propulsion,” whether it is a bus, a truck, or a passenger vehicle. Canadian Prime Minister Justin Trudeau said the tariffs were intended to counter China’s intentional overcapacity.

“We are transforming Canada’s automotive sector to be a global leader in building the vehicles of tomorrow,” he told reporters. “But actors like China have chosen to give themselves an unfair advantage in the global marketplace, compromising the security of our critical industries and displacing dedicated Canadian autos and metal workers.”

China has criticised the move, saying Ottowas was ignoring the rules of the World Trade Organisation (WTO). “The Canadian government insisted on announcing tariffs on Chinese electric vehicles in disregard of China’s repeated objections and solemn representations,” a spokesperson for the Chinese embassy in Canada said.

The tax hike in Canada, which the country first announced in June, follows similar moves in the US and the EU. Washington announced in May that it would quadruple import taxes, amounting to 100 per cent. The measure was to be effective from August but it has encountered some delays. According to Reuters, it might even be toned down in the coming days. The EU is calling for additional import taxes for EVs from China of up to 36 per cent.

What is strikingly different is that Canada does not make an exception for Tesla vehicles built in China. “It is a 100% surtax on all Chinese-made EVs. If companies currently making vehicles in China choose to move their production to a different country, they would no longer be captured by this tariff,” a Canadian government official told Reuters. The EU agreed to only levy an additional 9 per cent on Tesla vehicles from China, on top of the current import duties of 10 per cent for all cars.

The new duties also include a 25 per cent surtax on steel and aluminium products. According to Trudeau, duties on chips and solar cells could follow.

canada.ca (import duties on EVs), canada.ca (import duties on steel and aluminium products), reuters.com