Canada imposes 100% tariff on Chinese electric car imports

Canada imposes 100% tariff on Chinese electric car imports

“We are working to transform Canada’s auto sector to be a global leader in building the cars of tomorrow, but players like China have chosen to give themselves an unfair advantage in the global marketplace,” said Canadian Prime Minister Justin Trudeau.

Canadian tariffs on Chinese electric vehicles are set to take effect on October 1, while tariffs on steel and aluminum will be applied from October 15.

“The rapid development of China’s electric vehicle industry is the result of continuous technological innovation, well-established industrial and supply chains, and full market competition,” said a statement from the Chinese Embassy in Canada.

“Its competitiveness is gained by leveraging its comparative advantages and following market principles, rather than relying on government support.”

China is Canada’s second largest trading partner after the United States.

In May, the United States said it would quadruple its tariffs on Chinese electric vehicle imports to 100%.

This was followed by the European Union, which announced plans to impose tariffs on Chinese-made electric vehicles of up to 36.3%.

Canada’s tariffs on Chinese electric cars will include those made by Tesla at its Shanghai factory.

“Tesla will certainly be lobbying the Canadian government for some leeway on these tariffs, as it has already done with Europe,” said Mark Rainford, a commentator on the auto industry in China.

“If they fail to ease the tariffs enough, they will likely look to shift their Canadian imports to US or European factories since Canada is their sixth-largest market this year and therefore not of great importance.”

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Tesla did not immediately respond to a request for comment from BBC News.

Earlier this month, the European Union cut its planned additional tariffs on Chinese-made Tesla cars by more than half, after further investigations requested by the Elon Musk-owned automaker.

Chinese car brands are still unfamiliar in Canada, but some, such as BYD, have taken steps to enter the country’s market.

China is the world’s largest producer of electric vehicles, and its automakers are quickly gaining a significant share of the global market.

Meanwhile, Canada has struck billions of dollars in deals with major European automakers as it tries to become a major part of the global electric vehicle industry..

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