According to Reuters, on August 26, Canada said it would follow the example of the United States and the European Union by imposing a 100% tariff on electric vehicles imported from China, and announced a 25% tariff on imports of steel and aluminum from China.
The tariff applies to all electric vehicles imported from China, including those made by Tesla in China, a Canadian government official said.
The duties will be imposed on October 1.
Canadian Prime Minister Justin Trudeau said Canada is taking action to deal with China’s “state subsidy” policy.
“the important thing is that we are in line with other major economies in the world,” Justin Trudeau said at a three-day cabinet meeting in Halifax, Nova Scotia.
Justin Trudeau said Canada will continue to work with the United States and other allies and is considering further measures to impose tariffs on Chinese chips and solar cells.
But he didn’t give details.
At present, the United States is still Canada’s largest trading partner, while China is Canada’s second largest trading partner.
Under pressure from the country’s domestic auto industry, Canada finally took action against Chinese electric cars.
Canada is trying to position it as a key part of the global electric vehicle supply chain and has reached agreements worth billions of dollars to attract top European carmakers to participate in all aspects of the electric vehicle supply chain.
Flavio Volpe, president of the Canadian Association of Auto parts Manufacturers, wrote in an email: “We feel proven and encouraged.
Now let’s defend our market with Canada’s best innovation and determination.
” In response to Canada’s practice, the Chinese Embassy in Canada called it “protectionism” and “politically dominant behavior”, adding that Canada ignored the rules of the World Trade Organization (WTO).
An embassy spokesman said in a statement issued on the evening of August 26 that Canada’s actions would undermine normal economic and trade cooperation between the two countries and harm the interests of Canadian consumers and businesses.
The spokesman said: “in defiance of China’s repeated opposition and solemn representations, the Canadian government is determined to announce tariffs on Chinese electric vehicles.
China urges Canada to respect objective facts, abide by WTO rules, and immediately correct erroneous practices to avoid politicizing economic and trade issues.
” This is a 100% surtax on all electric vehicles made in China.
If manufacturers who currently produce cars in China and export to Canada choose to transfer production to other countries, they will no longer be affected by the tariff.
” The spokesman added.
Tesla began to export electric cars made by his Shanghai factory to Canada last year.
Under the influence of Tesla, Canadian car imports from China to Vancouver, its largest port, surged 460 per cent year-on-year to 44356 last year.
Tesla did not disclose the number of Chinese products it exports to Canada.
However, the vehicle identification number shows that Tesla’s Model 3 compact sedan and Model Y crossover models are exported to Canada from Shanghai.
Tesla Model Y.
photo: Tesla, Tesla shares closed down 3.
2% after the Canadian government announcement.
Seth Goldstein, equity strategist at Morningstar, said: “to deal with tariffs, I think Tesla will adjust his logistics and may export cars from the United States to Canada.
” “the market may be reacting to tariffs and weighing the potential profit impact,” Seth Goldstein said of Tesla’s falling share price.
If Tesla has to export cars to Canada from his high-cost US production base, this may have a potential impact on his profits.
” Tesla did not immediately respond to a request for comment on the report.
This month, the European Union revised the tariff rate on Chinese-made Tesla cars to 9%, lower than the tariff of up to 36.
3% on other Chinese-made electric vehicles.
In may, us president Joe Biden announced that he would triple tariffs on imported Chinese-made electric cars to 100 per cent, double tariffs on semiconductors and solar cells to 50 per cent, and impose new tariffs of 25 per cent on lithium-ion batteries and other strategic commodities, including steel.
The implementation of US tariffs has been postponed until September and a slight reduction in planned tariffs may be announced this week.
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