Canada has commenced a 30-day consultation, effective July 2, aimed at exploring measures, including additional tariffs, on electric vehicles (EVs) imported from China, in a move to safeguard its auto industry and bolster its burgeoning EV sector.
“As first announced on June 24, 2024, Canada is today launching a 30-day consultation, from July 2, 2024, to August 1, 2024 on potential policy responses to protect Canada’s auto workers and its growing EV industry from unfair trade practices, and prevent trade diversion resulting from recent action taken by Canadian trading partners,” Canada’s Department of Finance stated on July 2.
The consultations seek public input on proposed policy responses, such as the implementation of a surtax and adjustments to the federal Incentives for Zero-Emission Vehicles (iZEV) program, to address concerns over unfair trade practices and potential impacts on national security and data privacy.
According to the statement, Canada aims to address issues related to China’s overcapacity in EV production, labor and environmental standards, and alleged non-market practices driving the surge in Chinese EV exports.
This move by Canada follows similar actions by the United States and the European Union, both of which have recently imposed tariffs on Chinese-made EVs. In May, the US government announced plans to significantly increase tariffs on China-made EVs, while the European Union announced tariff hikes in June.
Notably, Canada currently imports only Tesla’s Chinese-made EVs, which are subject to a 6 percent import duty. However, most models qualify for a $5,000 rebate under Canada’s existing policies, as reported by CTV News.
