- The Ottawa government is reportedly considering scrapping the 100 percent tariff on Chinese EV imports, aligning with China on the EV issue.
- This comes as Canadian Prime Minister Mark Carney prepares for his Asian tour, during which he will seek to establish a "strategic relationship" with China.
Canada is reportedly considering scrapping additional tariffs on Chinese electric vehicle (EV) imports, diverging from the US approach.
The Ottawa government is considering eliminating the 100 percent tariff on Chinese EV imports, aligning with China on the EV issue, according to a report by The Wire China on October 26.
China has emerged as a automaking powerhouse, yet most North American consumers have yet to see Chinese vehicles on their roads due to high tariffs on its EVs, the report noted.
The shift comes as US President Donald Trump's trade war has severely disrupted the deeply integrated US-Canada automotive supply chain, with Canada seeking to reduce trade barriers through negotiations, the report said.
Canada imposed a 100 percent additional tariff on all EVs manufactured in China starting October 1, 2024, following the US government's move at the time.
Prior to the additional tariff, EVs produced in China faced a 6.1 percent tariff when exported to Canada. After the additional tariff took effect, their tax rate rose to 106.1 percent.
This effectively amounts to Canada closing its market to Chinese EV manufacturers.
Following the Canadian Treasury's announcement of this decision last August, Reuters reported that Tesla (NASDAQ: TSLA) had sought special treatment in Canada.
The US EV maker operates a factory in Shanghai -- its largest globally -- producing Model 3 and Model Y vehicles for both the Chinese market and export.
Canada's reported plan comes as Prime Minister Mark Carney prepares for an Asian tour.
He is expected to visit Malaysia, Singapore, and South Korea, attending the ASEAN Leaders' Summit in Kuala Lumpur and the Asia-Pacific Economic Cooperation (APEC) Summit in Gyeongju, South Korea, from October 31 to November 1.
Carney is seeking to establish a "strategic relationship" with China while also aiming to hold talks with Chinese leaders during the APEC summit, according to Bloomberg.
