Canada Applies 100% Tariff to PRC-made Electric Vehicles

Above: On August 15, 2024, in Farnborough, England, the British Motor Show 2024 features the BYD Atto 3 all-electric EV at the Farnborough International Exhibition Centre. Image copyright: John Keeble/Contributor/Getty Images News via Getty Images

The Facts

  • Following the US and EU, Canadian Prime Minister Justin Trudeau announced on Monday that it will impose a 100% tax on Chinese-made electric vehicle (EV) imports. Canada plans to impose a 25% tariff on steel and aluminum from China.

  • The move follows allegations from Canada and Western nations that China is subsidizing its EV industry. China has criticized the action as "trade protectionism" that "violates World Trade Organization rules."


The Spin

Anti-China narrative

Implementing harsh taxes on Chinese-made EV imports is the appropriate course of action since China will flood the country with artificially cheap EVs and undercut the domestic EV manufacturing industry, jeopardizing Canadian jobs. Matching US tariffs on Chinese imports, — including at least a 100% tariff on Chinese EVs — will protect billions of dollars in public money and foreign investments in Canada's auto manufacturing sector.

Pro-China narrative

Imposing high import tariffs on Chinese-made EVs is trade protectionism and violates World Trade Organization regulations. The tariff would hurt companies from both nations, Canadian consumers, and Canada's green transition and climate change mitigation. Canada should remedy this mistake since it would gravely damage the global trade system.


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