Canada to impose 100% tariff on Chinese EVs, including Teslas

YEREVAN, AUGUST 27, ARMENPRESS. Canada, following the lead of the United States and European Union, said on Monday it would impose a 100% tariff on imports of Chinese electric vehicles and announced a 25% tariff on imported steel and aluminum from China, Reuters reports. 

The duties apply to all EVs shipped from China, which would include those made by Tesla, a Canadian government official said.

Shares of the most valuable global automaker closed down 3.2%.

Canadian imports of automobiles from China to its largest port, Vancouver, jumped 460% year over year to 44,356 in 2023, when Tesla started shipping Shanghai-made EVs to Canada.

Prime Minister Justin Trudeau said Ottawa was acting to counter what he called China's intentional, state-directed policy of over-capacity.

"I think we all know that China is not playing by the same rules," he told reporters. The tariffs will be imposed starting Oct. 1.

"What is important about this is we're doing it in alignment and in parallel with other economies around the world," Trudeau said on the sidelines of a three-day closed-door cabinet meeting in Halifax, Nova Scotia.

A spokesperson for China's Commerce Ministry said on Tuesday that Canada's move "will disrupt the stability of global industrial and supply chains," and seriously undermine the global economic system and economic and trade rules.