Canada has announced a 100% tariff on electric vehicles (EVs) imported from China. The move follows similar actions by the United States and the European Union. They accuse China of unfairly subsidizing its EV industry. Canada also plans to introduce a 25% duty on Chinese steel and aluminum imports. The tariffs on EVs will take effect on October 1. Tariffs on steel and aluminum will begin on October 15.
Prime Minister Justin Trudeau stated that these measures are meant to protect Canada’s automotive sector and make it a global leader in EV production. However, China has criticized the tariffs, calling them “trade protectionism” and a violation of World Trade Organization rules. China insists its EV industry thrives on technological innovation, competitive supply chains, and market principles—not government subsidies.
China is Canada’s second-largest trading partner after the U.S. The tariffs will impact not only Chinese brands but also vehicles made by companies like Tesla at its Shanghai factory. Industry analysts believe Tesla may lobby the Canadian government for relief or shift its imports to other factories if the tariffs prove too burdensome.
Canada’s actions mirror those of the U.S., which quadrupled its tariffs on Chinese EVs earlier this year, and the EU, which imposed duties of up to 36.3%. As Canada strengthens its ties with European carmakers, the global landscape of electric vehicle production and trade continues to evolve.
