New geostrategic movement in the automobile industry. This time, it is Canada that has followed in the footsteps of its neighboring country, the United States. The measure announced today by the Canadian Executive is the imposition of tariffs of up to 100% on electric vehicles (BEVs) manufactured in China and imported by Canada.
This political decision was taken only by a few a few months after the United States, With the Biden administration, it will also approve 100% tariffs on Chinese electric vehicles. Specifically, the rule in the United States was approved in May and it is now in August that Canada is following the same steps.
In addition, this The move comes with a 25% tax on aluminum and steel products from China imported into your countryas a measure to protect domestic manufacturers, as reported by the Europa Press agency.
The government led by Prime Minister Justin Trudeau also announced that tariffs on electric vehicles from China will come into effect in the fall. These include electric and some hybrid passenger cars, trucks, buses and delivery vans.
“This additional tax isAnd will apply in addition to the 6.1% most-favoured-nation import tariff that currently applies to electric vehicles produced in China and imported into Canada,” he adds.
The tax on imports of steel and aluminum products from China will, however, come into force from October 15, 2024.
Protecting the automotive industry
After a cabinet meeting in Halifax, Nova Scotia, the Trudeau government announced it was implementing these measures to protect the Canadian auto industry, which supports more than 125,000 jobsmany of which are unionized, while saying its electric vehicle supply chain “is among the first in the world.”
“However, Canadian workers and the auto sector are currently facing a problem unfair competition from Chinese producerswho benefit from unfair and non-commercial policies and practices,” the government accuses in the note.
The Canadian government points out that “the intentional, state-led policy of overcapacity and the lack of strong labour and environmental standards threatens workers and businesses in the electric vehicle industry around the world” and “undermines Canada’s long-term prosperity.”
In addition, The Canadian automotive sector is highly integrated with that of the United States.since the vast majority of its light vehicle production, which amounted to 1.5 million units last year, is exported to its southern neighbor.
The North American country is now joining its ally, which this year imposed a 100% tariff on imports of battery-powered electric vehicles from the Asian giant.
It also joins the European Union, which has also announced proposed new tariffs on electric vehicles from China, albeit at lower levels than those proposed by the United States and now Canada.
Products manufactured by SAIC Motor faces additional European tariffs of 36.3%, while Geely Automobile Holdings and BYD face tariffs of 19.3% and 17%.respectively, according to a draft decision published last week by the European Commission.
The American manufacturer Tesla, for its part, will see an additional 9% tariff for its vehicles manufactured in China and imported into Europe.
New request
Finally, the Government of Canada announced that it will launch a second 30-day consultation on the imposition of additional tariffs on other sectors essential “to Canada’s future prosperity”, such as batteries and their components, semiconductors, solar products and critical minerals.
Similarly, the Canadian government reveals its intention to limit eligibility for incentives for zero-emission vehicles (iVZE), the incentives for medium and heavy-duty zero-emission vehicles (Imhzev) and the zero-emission vehicle infrastructure programme (ZEVIP) to products manufactured in countries that have negotiated free trade agreements with Canada.
“Our government is moving forward with decisive action to level the playing field, protect Canadian workers and align with actions taken by major trading partners,” said Deputy Prime Minister and Minister of Finance Chrystia Freeland.
