Canada Is Ready To Impose New Tariffs On Chinese Electric Vehicles

2026-03-11 Leave a message

 

 

        According to foreign media reports, people familiar with the matter revealed that the government led by Canadian Prime Minister Justin Trudeau is preparing to impose new tariffs on electric vehicles made in China to keep Canada and the United States and the European Union consistent.

 

         It is reported that the Canadian government still needs to make a final decision on how to impose new tariffs, but it may soon announce that it will start public consultation on tariff issues, which will affect electric vehicles exporting to Canada to Canada.

 

        At present, Trudeau is facing increasing pressure at home and abroad, demanding that it is consistent with the actions taken by the United States and the European Union. Last month, the United States announced that the tariffs of electric vehicles made in China have increased from the current 25%to 102.5%; the European Union also announced last week that from July 4th, on the basis of the current 10%tariff, it will Temporary tariffs ranging from 17.4%-38.1%of Chinese electric vehicles.

 

        Earlier on June 20, Doug Ford, Governor of Ontario, Canada, called on the Trudeau administration to impose equally tariffs on Chinese electric vehicles as the United States. On the social media platform X, he said: “Unless we take action quickly, our employment in Ontario and even the entire Canada will face risks.”

 

        According to data from the Canadian Bureau of Statistics, the value of electric vehicles imported from China last year soared from less than 100 million Canadian dollars in 2022 to $ 2.2 billion ($ 1.6 billion). After Tesla started to transport the Model Y car produced by the Shanghai plant to Vancouver, the number of cars from Vancouver from China increased by more than five times.

 

        However, the Canadian government is not worrying about Tesla, but the prospects of affordable electric vehicles produced by Chinese auto manufacturers eventually poured into the Canadian market.

 

        Trudeau and other Cabinet Ministers have publicly stated that they are monitoring their actions in other countries, but they have not promised new tariffs. A spokesperson at the Canadian Minister of Finance Chrystia Freeland said that Canada is “actively considering the next step to deal with the oversupply of China’s capacity”, but it does not explain whether it is ready to levy tariffs.

 

         The Canadian Automobile Industry Organization also called on Canada to collect high tariffs. The organization warned that considering that the United States is about to review the US-Mexican-Canadian free trade agreement, Canada cannot be inconsistent with the United States on this issue. The United States and Canada’s car supply chains are closely united, and a large number of parts and vehicles are flowing.

 

         Most cars produced in Canada are exported to the United States.

 

        However, considering that China may take trade countermeasures, Trudeau has taken cautious actions. Some environmental organizations believe that the most important thing is to keep the low cost of electric vehicles to encourage more consumers to adopt.

 

         The Ontario government led by the Trudeau government and DOUG FORD promised that it will invest billions of dollars to build a domestic electric vehicle industry chain, from key minerals required for mining batteries to assembly vehicles and light trucks, including Volkswagen, which are Volkswagen. Stellandis and Honda Motors provide subsidies for large -scale factories.