Canada Follows US Lead, Slaps Major Tariffs on Chinese Electric Vehicles

Associated Press
August 26, 2024 | 11:31 pm
SHARE
Visitors look at the Chinese made BYD ATTO 3 at the IAA motor show in Munich, Germany, on Sept. 8, 2023. (AP Photo/Matthias Schrader)
Visitors look at the Chinese made BYD ATTO 3 at the IAA motor show in Munich, Germany, on Sept. 8, 2023. (AP Photo/Matthias Schrader)

Toronto. Canada's government on Monday announced it is imposing a 100 percent tariff on imports of Chinese-made electric vehicles that matches US tariffs and follows similar plans announced by the European Commission.

The announcement came after encouragement by US national security advisor Jake Sullivan during a meeting with Canadian Prime Minister Justin Trudeau and cabinet ministers on Sunday. Sullivan is making his first visit to Beijing on Tuesday.

Trudeau said Canada also will impose a 25 percent tariff on Chinese steel and aluminum.

"Actors like China have chosen to give themselves an unfair advantage in the global marketplace," he said.

ADVERTISEMENT

There was no immediate response from China.

Chinese officials are likely to raise concerns about American tariffs with Sullivan as Beijing continues to repair its economy after the Covid-19 pandemic. US President Joe Biden in May slapped major new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum, and medical equipment.

"The US does believe that a united front, a coordinated approach on these issues benefits all of us," Sullivan told reporters on Sunday.

Biden has said Chinese government subsidies for EVs and other consumer goods ensure that Chinese companies don't have to turn a profit, giving them an unfair advantage in global trade.

Chinese firms can sell EVs for as little as $12,000. China's solar cell plants and steel and aluminum mills have enough capacity to meet much of the world's demand. Chinese officials argue their production keeps prices low and would aid a transition to the green economy.

"We're doing it in alignment, in parallel, with other economies around the world that recognize that this is a challenge that we are all facing," Trudeau said of the new tariffs. "Unless we all want to get to a race to the bottom, we have to stand up."

Deputy Prime Minister Chrystia Freeland said Canada also will launch a 30-day consultation about possible tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals, and solar panels.

"China has a intentional state-directed policy of overcapacity and oversupply designed to cripple our own industry," Freeland said. "We simply will not allow that to happen to our EV sector, which has shown such promise."

The only Chinese-made EVs currently imported into Canada are from Tesla, made at the company's Shanghai factory.

Canada "had to go with the US position, when you think about the economic integration that we have with the US. More than 75 percent of our exports go to the US," said a former Canadian ambassador to China, Guy Saint-Jacques. "This reflects the fear that the next president of the United States might be Donald Trump, and so they know we have to be pretty much aligned in all of this."

Saint-Jacques said Canada can expect retaliation from China in other industries, adding that barley and pork are candidates because the Chinese can get it from other countries.

"China will want to send a message," he said.
 

Tags: Keywords:
SHARE

Related Articles


Business Feb 11, 2026 | 1:03 am

Chinese Automakers Roll Out Electric SUVs Under Rp 600 Million at Jakarta Auto Show

Chinese automakers debuted electric SUVs priced below Rp 600 million at IIMS, intensifying competition in Indonesia’s growing EV market.
Business Feb 5, 2026 | 5:25 pm

Suzuki Launches First Electric Car in Indonesia With e-Vitara Debut

Suzuki has launched its first electric car in Indonesia, unveiling the e-Vitara at Jakarta’s IIMS with prices starting at Rp 755 million.
Business Jan 21, 2026 | 4:26 pm

Indef Warns Cutting EV Incentives Could Undercut Surging Sales

INDEF warns that ending EV incentives could slow Indonesia’s energy transition and strain the state budget amid global uncertainty.

The Latest


News 6 hours ago

Dear Mr. President, Don’t Skip ASEAN Summits

Despite calls for Prabowo to stay home, the Indonesian leader still needs to attend ASEAN summits.
Business 7 hours ago

PLN Rushes Coal Supplies After Power Outages Hit Java

PLN is rushing to secure coal supplies after shortages triggered rolling blackouts across Java, disrupting businesses and daily life.
Business 11 hours ago

Japan-Backed ADB Invests in Indonesia’s Human Capital

As many as 399 Indonesian awardees have joined the ADB-Japan Scholarship Program from 1988 to 2024.
Business 11 hours ago

Indonesian Stocks Rise Despite Foreign Outflows as MSCI Review Looms

Indonesia's JCI rose 2.8% as easing geopolitical tensions offset foreign outflows, MSCI concerns and rupiah pressures.
News 12 hours ago

World Cup 2026: Paraguay Holds Off Turkey With 10 Men to Keep Knockout Hopes Alive

Matias Galarza scored after 65 seconds as 10-man Paraguay beat Turkey 1-0, eliminating the Turks and securing first place for the US.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED