Canadian Prime Minister Justin Trudeau announced on Monday a 100 percent tariff on Chinese electric vehicle (EV) imports, aligning with recent US measures aimed at curbing the influx of Chinese state-subsidized vehicles into North America. Trudeau criticized China for not adhering to global environmental and labor standards, and also introduced a 25 percent surtax on imports of Chinese steel and aluminum products.
The new tariffs match recent US tariffs on Chinese EVs and exceed the 38 percent tariff imposed by the European Union. Canada’s auto manufacturing sector, which supports over 125,000 jobs, has received significant investments to support its transition to electric vehicles and strengthen its domestic battery supply chain. The strategy mirrors the US Inflation Reduction Act, which offers incentives for green industries.
Effective October 1, the 100 percent EV tariff will apply to Chinese electric and certain hybrid passenger vehicles, trucks, buses, and delivery vans. Additionally, from October 15, the surtax on steel and aluminum imports from China will be implemented.
The Canadian government also plans to restrict EV incentives to vehicles from countries with which Canada has free trade agreements, effectively excluding Chinese products.
In response, China’s embassy in Canada expressed strong dissatisfaction, condemning the tariffs as trade protectionism and a politically motivated decision that could damage trade relations and hinder Canada’s green transition efforts.
