In May, the Biden administration announced tariffs on Chinese-made EVs would swell to 100% while earlier this month, the European Union revealed levies on Chinese EVs would be increased by as much as 38.1% on top of the existing 10% tariff. Last week, Ontario Premier Doug Ford pleaded with Canadian Prime Minister Justin Trudeau to at least match U.S. tariffs, claiming that “unless we act fast, we risk Ontario and Canadian jobs.”
Prime Minister Justin Trudeau has been actively monitoring international actions regarding Chinese-made EVs, including discussions at the recent G7 meeting in Italy. He stated, "We will look very carefully at what steps need to be taken to ensure that the Canadian auto industry and indeed Canadian consumers are well supported for years to come."
According to a spokesperson for Canadian Finance Ministery Chrystia Freeland, the country is “actively considering next steps to counter Chinese oversupply,” adding that “China has an intentional, state-directed policy of overcapacity [and] protecting Canadian jobs, manufacturing, and our free trade relationships is essential.”
Statistics show a significant increase in sales of Chinese-made EVs in Canada, jumping from less than CA$100 million ($73 million) in 2022 to CA$2.2 billion ($1.6 billion) in 2023 alone. Tesla's sales of Chinese-made EVs have been a major contributor to this surge.
Source: Bloomberg