Canada to follow US lead in imposing 100% tariff on Chinese electric vehicles
Canada will impose a 100% tariff on Chinese electric vehicles and a 25% tariff on steel and aluminum, effective October 1, 2024, to counter China's over-capacity policies and support domestic manufacturing.
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Canada has announced it will impose a 100% tariff on Chinese electric vehicles, following a similar move by the United States. Prime Minister Justin Trudeau stated that this action is a response to China's state-directed over-capacity policies. In addition to the EV tariffs, Canada will also implement a 25% tariff on imported steel and aluminum from China, effective October 1, 2024. Trudeau emphasized that Canada is aligning its trade policies with other global economies to counteract unfair practices. The tariffs come as Canada seeks to strengthen its position in the global electric vehicle supply chain, amid rising imports of Chinese automobiles, which surged by 460% in 2023. The announcement has affected Tesla's stock, which dropped over 3% as investors weighed the potential impact on profits if the company shifts its export logistics from China to the U.S. The Canadian government is also considering additional tariffs on semiconductors and solar cells. The move aligns with recent actions by the European Union, which has imposed tariffs on Chinese EV imports. The Canadian automotive industry has expressed support for the tariffs, viewing them as necessary to protect domestic manufacturing.
- Canada will impose a 100% tariff on Chinese electric vehicles starting October 1, 2024.
- A 25% tariff on imported steel and aluminum from China will also be implemented.
- The tariffs aim to counter China's state-directed over-capacity policies.
- The Canadian government is exploring further tariffs on semiconductors and solar cells.
- The automotive industry in Canada supports the tariffs to protect domestic manufacturing.
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