Prime Minister Justin Trudeau announced on Monday that Canada will impose a 100 per cent punitive tariff on Chinese-made electric vehicles (EVs) starting October 1, 2024. This move aligns Canada with a similar initiative pursued by the United States aimed at curbing the influx of what are being described as unfairly state-subsidized vehicles from China.
The announcement was made during a federal cabinet retreat in Halifax, where ministers are strategizing for the upcoming year in anticipation of the federal election expected in October 2025. Trudeau and his cabinet received input from Jake Sullivan, U.S. President Joe Biden’s national security advisor, during an unexpected visit on Sunday before Sullivan’s scheduled trip to China.
Under growing industry pressure to respond to the U.S. program, Trudeau declared that the 100 per cent surtax would be levied on all Chinese-manufactured electric vehicles, including certain hybrid passenger cars, trucks, buses, and delivery vans. The move is intended to “level the playing field for Canadian workers” and support the growth of Canada’s emerging EV industry, enabling it to compete both domestically and globally.
In addition to the tariffs on EVs, Trudeau also announced that, effective October 15, 2024, the federal government will impose a 25 per cent surtax on imports of steel and aluminum products from China.
These measures represent Canada’s latest effort to protect its industries and workers from the impact of what it considers unfair trade practices by China. More details on the implementation of these tariffs are expected to follow in the coming weeks.