Canada mulling import tariffs on Chinese-made EVs after U.S. move

Canada is looking at the massive new U.S. import tariffs on Chinese-made electric vehicles imposed by President Joe Biden earlier this month.

Canada is looking at the massive new U.S. import tariffs on Chinese-made electric vehicles imposed by President Joe Biden earlier this month, but is not making any commitment to following suit north of the border.

Chinese brands are not a major player in Canada’s EV market at the moment but imports from China have exploded in the last year as Tesla switched from U.S. factories for its Canadian sales to its manufacturing plant in Shanghai.

And the Canadian Vehicle Manufacturers’ Association says Chinese EV makers have already made big inroads in Europe and are looking to North America next.

“That potentially is on the horizon,” said CVMA President Brian Kingston in an interview with The Canadian Press.

He isn’t advocating for Canada to match the tariffs specifically, noting the risk of Chinese retaliation. But he said Canada can’t get too out of step with the U.S.

“We always have to align our policy,” said Kingston.

President Joe Biden moved May 14 to quadruple the U.S. import tariff on Chinese-made EVs to 100 per cent. He cited unfair subsidies from the Chinese government to Chinese EV makers. He is also hiking tariffs on a lengthy list of other Chinese products including solar cells, computer chips, medical equipment and lithium ion batteries.

Canada currently imposes a six per cent tariff on Chinese-made vehicles, but the cars do qualify for up to $5,000 in federal rebates for EV purchases.