Canada is preparing potential new tariffs on China-made EVs to bring the country in line with actions by the US and the European Union, according to Bloomberg.
The Canadian government is preparing potential new tariffs on China-made electric vehicles (EVs) to bring the country in line with actions by the US and the European Union, Bloomberg said in a report today, citing people familiar with the matter.
The Canadian government still has to make final decisions on how to move forward, but is likely to announce soon the start of public consultations on tariffs that would hit Chinese exports of EVs into Canada, according to the report.
The value of Chinese EVs imported into Canada last year soared to C$2.2 billion ($1.6 billion) from less than C$100 million in 2022, according to Statistics Canada, Bloomberg's report noted.
The number of cars arriving at the port of Vancouver from China more than quintupled after Tesla (NASDAQ: TSLA) began shipping the Model Y from its Shanghai plant, the report said.
However, the Canadian government's biggest concern is not Tesla, but the prospect of cheap cars produced by Chinese automakers eventually flooding the market, Bloomberg said.
The US government announced plans in May to nearly quadruple tariffs on China-made EVs, with the final rate as high as 102.5 percent.
The European Union said last week it plans to raise tariffs on Chinese EVs, with some vehicles facing additional tariffs of up to 38.1 percent on top of the original 10 percent tariff.
After the EU's plan was announced, China voiced its opposition.
The EU's move is a naked act of trade protectionism, and China reserves the right to file a lawsuit with the WTO and will take all necessary measures to defend the legitimate rights and interests of Chinese companies, China's Ministry of Commerce said on June 13.
China urged the EU to immediately correct its wrong practices and deal with economic and trade frictions through dialog and consultation.
Nio says its commitment to Europe remains unwavering despite protectionism
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