On Monday, Prime Minister Justin Trudeau revealed that the Canadian government will enforce a 100% tariff on electric vehicles manufactured in China, joining other Western nations to restrain China’s dominant electric vehicle industry.
Trudeau stated, “We’re doing it in alignment, in parallel, with other economies worldwide that recognise that this is a challenge that we are all facing.”
This tariff aligns with the expected US tariffs and is akin to a proposal by the European Commission. Trudeau also unveiled a new 25% tariff on Chinese steel and aluminium.
The new tariff on electric vehicles will also impact US automaker Tesla, which brings in vehicles manufactured at its factory in Shanghai. Presently, Tesla’s electric vehicles are the sole Chinese-made electric cars available for purchase in Canada, although it’s rumoured that BYD is looking to enter the market.
The White House national security adviser Jake Sullivan is set to meet with Chinese Foreign Minister Wang Yi on Tuesday, and according to Chinese state newswire Xinhua, Wang Yi is expected to address tariffs and trade barriers during the meeting.
China’s economy, which depends heavily on exports, is heavily dependent on trade with the United States, and Ottawa has been closely observing the actions of the Biden administration to ensure that the two North American economies stay in alignment. Additionally, Ottawa is getting ready for the possibility of a second Trump term that could bring about greater economic hostility towards China.