Canada considers imposing tariffs on Chinese electric vehicles following similar actions taken by the US.

Prime Minister Justin Trudeau and his trade and industry ministers state that Canada is currently exploring the possibility of increasing tariffs on imported electric vehicles from China, in response to a significant tax increase implemented by the United States earlier this month.

Although Chinese brands do not have a significant presence in Canada’s EV market, imports from China have surged in the past year as Tesla shifted its Canadian sales from U.S. factories to its manufacturing plant in Shanghai.

Trade data from 2022 shows that Canada imported $84 million worth of electric-only vehicles from China, a figure that skyrocketed to $2.2 billion in 2023.

President Joe Biden is raising import taxes on Chinese-made EVs to 100 percent this year, citing unfair subsidies from the Chinese government to Chinese EV manufacturers.

In a similar vein, the European Commission initiated a study last fall to examine unfair trade practices by China, as Chinese-made EVs gained significant market share across Europe.

While Chinese EV brands are not currently sold in Canada, Chinese automakers are actively considering the North American market.

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