According to foreign media reports, on December 5, Canadian Parliament Budget Officer Yves Giroux said in a report that Canada expects to earn approximately 100 million Canadian dollars (approximately US$71.
4 million) each year from new tariffs on China steel, aluminum and electric vehicles.
However, Giroux’s latest report did not consider the impact of China’s trade retaliation, nor did it consider the impact of US President-elect Donald Trump’s possible 25% across-the-board tariff increase on Canadian goods.
Canadian Finance Minister Chrystia Freeland announced in August a 100% tariff on electric vehicles made in China and a 25% tariff on China’s steel and aluminum, which will take effect in October.
Giroux estimates that Canada’s imposition of tariffs on electric vehicles on China will actually lead to a decline in Canada’s revenue.
This is because almost all electric vehicles currently imported from China come from Tesla’s Shanghai factory, and Tesla is likely to circumvent the new tariffs by exporting cars to Canada from factories outside China.
Since Canada previously imposed a 6.
1% tariff on China cars, if Tesla purchases cars from duty-free areas such as the United States, Canada will lose this tariff revenue.
Giroux concluded that this means a little more than C$100 million in lost revenue every year.
Giroux estimates that due to the impact of new steel and aluminum tariffs, Canada’s demand for China’s steel and aluminum will be reduced by nearly 50%, but it is still likely to generate more than 200 million Canadian dollars in annual revenue.
Giroux said in the report that overall, Canada’s imposition of steel and aluminum tariffs on China has “negligible” impact on GDP.
He said output from Canadian metals and utilities will increase, while output from manufacturing and construction may fall due to the increased cost for companies to source metals from elsewhere or pay new tariffs.
, Photo source: Tesla.
In addition, Volvo and Polar Star have also been importing a small number of cars from China to Canada.
, Volvo Cars Canada revealed in October that it had imported new EX30, XC60 and a “very limited number” of S90 sedans from China to Canada.
In 2025, Volvo plans to move production of the EX30 and XC60 to other factories, in part in response to Canada’s crackdown on China-made cars.
Volvo Canada said it will start purchasing XC60 from Torslanda, Sweden in the first quarter of 2025 and will transfer production of the EX30 to its Ghent plant in Belgium in the first half of 2025.
Polar Star’s plans for the Polestar 2 model made in China are unclear.
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