Conservative Leader Pierre Poilievre announced on Friday that a future Conservative government would impose substantial import tariffs on Chinese-made electric vehicles (EVs) and other products to protect Canadian jobs. His proposal comes as the Liberal government recently completed consultations on imposing tariffs on Chinese-made EVs and initiated additional consultations that could extend these measures to other industries.
Poilievre made his announcement at the Stelco steel plant in Hamilton, highlighting steel as one of the products he believes China is attempting to undermine in Canada. He accused the Chinese government of exploiting weak labor and environmental standards to produce artificially cheap steel, aluminum, and EVs that contribute to pollution.
“They have stolen technology from Western countries, limited access to global supply chains, and heavily subsidized their steel, aluminum, and EV industries,” Poilievre said. “Their goal is to crush our industries and take our jobs.”
His plan includes a 100% import tax on Chinese-made EVs and the cancellation of Canadian EV purchase rebates for these vehicles. Additionally, he proposed a 50% import tariff on semiconductors and solar cells, as well as a 25% tariff on steel, aluminum products, graphite, critical minerals, EV batteries, battery parts, permanent magnets, and ship-to-shore cranes.
Poilievre’s plan mirrors the tariffs announced by U.S. President Joe Biden in May, aimed at protecting U.S. industries from unfair Chinese competition and supply chain control. The European Union also increased import tariffs on Chinese EVs this summer, leading China to file a complaint with the World Trade Organization on Friday.
Poilievre criticized Prime Minister Justin Trudeau for not following the U.S. lead, accusing him of failing to protect Canadian workers and jobs. He also pointed out that the current Canadian EV rebate program does not restrict the country of origin, with Chinese-made Teslas being eligible for rebates under the program.
Canada currently applies a 6% import tariff on Chinese-made passenger vehicles, but an increase seems likely. The Liberal government recently completed a month-long consultation process on higher tariffs, with Finance Minister Chrystia Freeland stating in June that Canada would not tolerate China’s overproduction and oversupply of EVs and related products.
On Friday, Freeland’s spokesperson, Katherine Cuplinskas, criticized Poilievre for attempting to take credit for the government’s existing stance on protecting Canadian auto workers from unfair Chinese trade practices.
Several hundred submissions were made during the consultation period, which ran from July 2 to August 1. Freeland met with representatives from labor groups, as well as the steel, aluminum, critical minerals, and auto industries. While most industry groups support new tariffs, some environmental advocates argue that they could delay the expansion of EVs in Canada by keeping lower-cost vehicles out of the market.
The new tariffs would be implemented under section 53 of the Customs Tariff Act, allowing for surtaxes on imported goods in response to practices that harm Canada’s industry. Canada has made significant investments in its auto sector to become a key player in the global transition to electric vehicles. Over the past four years, federal and provincial governments have offered $53 billion in tax credits, production subsidies, and capital grants to 13 EV plants, battery factories, and related production sites.
This effort propelled Canada to surpass China this year in Bloomberg NEF’s annual ranking of countries’ potential in the lithium-ion battery supply chain.
The Liberal government may be considering tariffs beyond EVs as well. On Friday, International Trade Minister Mary Ng launched a 45-day consultation period on potential new measures to protect Canada’s economic security interests. The consultation will address supply chain disruptions, rising protectionism, and unfair trade practices but does not specify industries or products that may be targeted. The consultation period will end on September 23.