On August 27, according to Bloomberg, Canada will impose new tariffs on Chinese-made electric vehicles, aluminum and steel, following Western allies and taking measures to protect domestic manufacturers. Canadian Prime Minister Justin Trudeau announced the details of the policy in Halifax on Monday, imposing a 100% tariff on electric vehicles.

New tariffs on electric vehicles will take effect on October 1 and will also cover certain hybrid passenger cars, trucks, buses and vans. Canada's current tax rate on Chinese electric vehicles is 6.1%, and the new tariffs will be levied on this basis.

In addition, the Trudeau government also launched a 30-day consultation on new tariffs in other areas such as batteries and battery components, semiconductors, solar products and critical minerals.

Canada’s move comes after the United States and the European Union imposed additional tariffs. U.S. President Biden announced in May this year that he would triple the tariffs on Chinese electric vehicles to 100%, and impose tariffs on semiconductors and solar cells. Doubling the tariff to 50% and imposing a new 25% tariff on lithium-ion batteries and other strategic materials including steel.

The EU announced earlier this month that it would impose tariffs of up to 36.3% on imported electric vehicles.

A spokesperson for the Chinese Embassy in Canada stated that on August 26, the Canadian government ignored China’s repeated objections and solemn representations and insisted on announcing additional tariffs on Chinese electric vehicles. China expresses strong dissatisfaction and firm opposition to this. Canada's move is a typical act of trade protectionism and political dominance, which ignores WTO rules and is inconsistent with Canada's position as an advocate of global free trade and addressing climate change.

This move will undermine the normal economic and trade cooperation between China and Canada, harm the interests of Canadian consumers and businesses, and is not conducive to Canada's green transformation and global efforts to combat climate change. It will completely harm others and not benefit ourselves. China urges Canada to respect objective facts, abide by WTO rules, immediately correct wrong practices, and not to politicize economic and trade issues. China will take all necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.

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Editor: Gao Xu