Canada is considering removing additional tariffs on electric vehicles (EVs) imported from China, a move that would set it apart from the United States’ trade stance, The Wire China reported on Saturday.
The Ottawa government is reportedly evaluating whether to scrap the 100% surcharge imposed on Chinese-made EVs, aligning more closely with Beijing on trade policy. The potential shift comes amid efforts to ease tensions and strengthen Canada’s broader economic ties across Asia.
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Canada introduced the 100% additional tariff on October 1, 2024, mirroring a measure previously adopted by Washington. Before the hike, Chinese-made EVs faced a 6.1% import duty, which pushed the total tax burden to 106.1% once the new tariff took effect — effectively barring Chinese automakers from the Canadian market.
The move had significant implications for companies like Tesla, which operates its largest manufacturing facility in Shanghai. The plant produces Model 3 and Model Y vehicles for both domestic and export markets. Following Ottawa’s announcement last year, Reuters reported that Tesla sought special treatment for imports from its Chinese factory.
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According to The Wire China, Canada’s reconsideration of the tariff comes as Prime Minister Mark Carney prepares for a diplomatic tour of Asia, including visits to Malaysia, Singapore, and South Korea, where he will attend the ASEAN Leaders’ Summit and the APEC Summit. Carney is expected to use the trip to pursue what his government describes as a “strategic relationship” with China while seeking broader trade opportunities in the region.
The reported deliberations follow growing concern among policymakers that prolonged alignment with U.S. trade restrictions could constrain Canada’s economic flexibility and disrupt its integrated automotive supply chain.