100 Percent Tariff on China-Made EVs Will Level Playing Field for Canada’s EV Sector, Industry Rep. Says

Prime Minister Justin Trudeau announced the new tariff on Aug. 26, saying it will address China’s “unfair advantage” in the EV sector. The tariff will apply to electric buses, cars, delivery vans, and certain hybrid vehicles. A 25 percent tariff will also be put on China-made imports of steel and aluminum products starting Oct. 15.
Global Automakers of Canada president and CEO David Adams described the new EV tariff as a “pre-emptive measure” to ensure equal opportunity across Canada’s EV marketplace.
“Principally, they are Teslas built in China,” he said.
Tesla’s vehicles are manufactured in the company’s Shanghai factory before being shipped to North America. They then enter Canada through the U.S.
At this point, the foreign EV impact is relatively minor, Adams said. But that may not be the case for much longer.
Chinese electric vehicle maker BYD is looking to expand into the Canadian automotive market, according to a recent regulatory filing.
The Epoch Times contacted BYD for comment on its plans and potential vehicle prices, but didn’t receive a response prior to publication. Based on BYD’s average pricing in other markets, it’s expected that that other electric vehicles sold in Canada would not be able to compete with the company’s offerings on price.
That has led both the United States and the European Union to also implement tariffs against Chinese EVs.
Biden has said Beijing’s subsidies for electric vehicles and various consumer products allow Chinese companies to forgo profit-making, throwing global trade off balance.
The EU set tariffs of up to 37.6 percent on China-manufactured EVs by all member states beginning July 5. The decision will initially apply for four months but can be extended for several years.
Adams said the tariff has already slowed the flow of Chinese EVs into Europe. He said Europe and the U.S. are largely in the same situation as Canada, in that there are very few Chinese EVs in the market as yet.
“It is a defensive move to ensure that the domestic ecosystem has an opportunity to get built up,” he said.
Canada “had to go with the U.S. position, when you think about the economic integration that we have with the U.S.,” he said. “More than 75 percent of our exports go to the U.S.”
Sullivan said while it is up to Canada to determine its own trade policies, U.S. officials would be speaking with its Canadian counterparts “behind closed doors about our experience and what we see.”
“The U.S. does believe that a united front, a coordinated approach on these issues benefits all of us,” Sullivan said.
Deputy Prime Minister Chrystia Freeland said Canada’s decision was cemented after hearing from the country’s automotive sector.
Umicore announced last month it had halted spending on a $2.76-billion battery materials plant in eastern Ontario, citing substantially scaled-back growth projections for the EV market.
And in April, Ford announced a two-year delay in the planned production of electric vehicles at its facility in Oakville, Ont., followed by a June announcement that it was shifting its production strategy from EVs to focus on its Super Duty pickup trucks.