Canadian Prime Minister Justin Trudeau has announced 100 per cent tariff on imports of Chinese electric cars, coinciding with US measures seeking to counter the flow of state-subsidised Chinese vehicles into North America.
Canada will begin levying an additional 100 per cent tax on imports of Chinese electric cars from October 1, 2024. The new rules will apply to imports of both all-electric cars and a range of hybrids, as well as trucks, buses and vans for delivery services. In addition, Trudeau said Canada will impose a 25 per cent tariff on Chinese steel and aluminium.
Trudeau also emphasised that the decisions to raise duties were made after consulting with the US President’s National Security Advisor Jake Sullivan, who urged action in this regard. Sullivan and Trudeau discussed trade policy during a meeting in Halifax on Sunday.
Canada’s decision followed similar steps taken by the US, where tariffs on Chinese electric cars were increased to 100 per cent. US President Joe Biden justified the measures on the grounds that subsidies to Chinese manufacturers create an unfair advantage in the global market. The EU has also tightened its tariffs, but to a lesser extent.
These actions point to growing tensions in trade relations between the US and China, especially in the area of high-tech and green products, which are becoming increasingly important against the backdrop of the global shift to cleaner technologies.
