Canada slaps a big tariff on Chinese EVs — joining a Western push to stop oversupply
.jpg)
Electric van-couver… Canada’s taking a cue from the US with new tariffs on China-made EVs. In June, President Biden said the US would hike duties on Chinese EVs to over 100%, arguing China was "flooding global markets with artificially low-priced exports." Now Canada’s following suit with its own 100% EV tariff (plus a 25% duty on China-made aluminum and steel). Canadian Prime Minister Justin Trudeau said China isn’t “playing by the same rules” as its competitors.
Charged up: Last year, Canada's EV imports from China surged more than 5x at its largest port in Vancouver, as Tesla shipped Shanghai-made Model 3s and Model Ys.
Full speed: Canada’s tariffs, which go into effect in October, could expand to include Chinese chips, battery parts, and solar panels.
EV overdrive… China produces over half the world's electric vehicles. Its EV dominance has been driven by lower labor costs, hefty government subsidies, and cheaper batteries. Now countries are laying down speed bumps to curb oversupply. In May, EU regulators hit Chinese EV makers with a 38% tariff, but last week they recalculated duties for each company (Tesla got a significant slash). The tariff hikes come as countries try to protect their auto industries from budget Chinese competition: China’s BYD (one of the world’s biggest EV makers) plans to launch its $10K electric Seagull in Europe next year.
Moving fast can make others furious… While China says its souped-up EV production keeps prices low and supports the shift to eco-friendly cars, other governments argue it undercuts competition. It’s not just a global issue: China’s oversaturated EV market has caused problems for domestic carmakers too. Local competition has sparked a price-slashing war that’s squeezed profits. China expects 100+ new EV models to hit the market this year.