AUTONEWS

Canada is studying solutions to impose higher tariffs on Chinese electric vehicles.

After the United States and the European Union, Canada could be yet another country (or bloc, in the case of the EU) to impose higher tariffs on Chinese electric vehicles.

The American channel Bloomberg spoke privately with people from the Justin Trudeau government who indicated that the prime minister would be preparing a package with new taxes on EVs manufactured in China.

It is worth highlighting that the information is behind the scenes. Publicly, Trudeau and his advisers have said they are simply monitoring the movement adopted by other nations.

The prime minister's surroundings, however, have already mobilized around the issue. His team is still evaluating the best way to apply this taxation. The first step is likely to be the opening of a public consultation on the matter. The idea is not to do something abruptly – especially because China is an important trading partner for Canada.

On the other side of the coin, Canadian industry is increasingly putting pressure on the country's government. Furthermore, the measure would be part of strategic alignment with European and American partners.

In May, US President Joe Biden announced a plan that could increase taxes on electric cars manufactured in China by 4 (!). This means a final rate of up to 102%, meaning the price of the vehicle would double. The European Union said last week that it plans to increase tariffs on Chinese electric vehicles. The percentage should be around 48% in some cases.

In addition to this alignment with allies, Justin Trudeau's cabinet has been suffering internal pressure.

On Thursday (20), Ontario Premier Doug Ford accused China of taking advantage of low labor standards and dirty energy to manufacture cheap electric vehicles.

Afterwards, he made an appeal to Canada's greatest ruler:

In addition to politicians, the Canadian auto industry also demands the imposition of severe tariffs.

They argue that Chinese expansion could be fatal for local factories and say that it is necessary to follow the Biden government in respecting the free trade agreement between the two countries.

The vast majority of Canada's automotive production, in fact, is exported to the USA.

An increasingly dominant China...These actors also rely on the most recent numbers. Canada imported a total of 2.2 billion Canadian dollars (1.6 billion U.S. dollars) worth of Chinese vehicles last year. This represents a jump from the 100 million Canadian dollars spent on this in 2022.

This phenomenon is repeated in other parts of the world, with companies like BYD entering different markets very strongly, always with quality products that are cheaper compared to the competition.

Faced with this, Western democracies are increasingly concerned.

The problem is how to balance things. The increase in trams is a good thing, especially for governments who need to achieve targets to pollute less. Furthermore, a part of the population (and the electorate) has precisely this type of concern as a priority.

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