Canada’s Prime Minister Justin Trudeau has refrained from committing to follow the United States’ recent move to significantly increase tariffs on battery-electric vehicles (BEVs) imported from China.
On May 14, the same day the Biden administration announced a hike in existing U.S. tariffs on Chinese EVs from 27.5% to 102.5%, Trudeau attended the inauguration of a lithium-ion separator plant in Ontario. This facility is a key component of Canada’s strategy to develop a robust EV supply chain in the region.
“We’re obviously closely monitoring what our closest trading partner, the United States, is doing,” Trudeau remarked regarding the U.S. tariff increase. However, when pressed about Canada’s intentions regarding similar tariffs, he neither confirmed nor denied any forthcoming action, as noted by Auto News.
Canada currently imposes no significant tariffs on Chinese-made EVs. Nevertheless, the country aims to position itself as a premier destination “to invest in an EV supply chain.”
The new lithium-ion separator plant in Ontario represents an investment of approximately $1.6 billion and will manufacture 700 square meters of coated membrane used in lithium battery production annually. The federal government is providing $2.5 billion in tax credits for the project, with an additional $2.5 billion contributed by the Ontario government toward capital and land servicing costs for future facilities, according to Global News.
In nearby Allison, Ontario, Honda is embarking on a CA$1.5 billion investment to convert an existing factory into an EV-exclusive site. Honda will also establish a large battery plant in the vicinity and launch two battery component facilities in Ontario.
“At a time when we’re facing numerous new challenges in an uncertain world, and after decades of decline in our manufacturing communities, we have a plan to seize this moment, to secure our future for our families, revitalize our main streets, and position Canada as the most dependable supplier in a net-zero world,” Trudeau emphasized during the lithium-ion separator plant’s inauguration ceremony.
