The global economy is experiencing a wave of tariff mania! Countries seem to be competing with each other to impose the highest tariffs. Canada is about to join this trend, following the United States and the European Union. The Canadian government is considering clamping down on imports of Chinese electric vehicles.
While no final decision has been made, Canadian authorities are currently developing appropriate policies and planning public consultations on tariffs to limit imports of Chinese-made EVs. The main concern for Canada is the high likelihood that its market will be flooded with cheap cars from China.
The Canadian government led by Prime Minister Justin Trudeau is seeking to align itself with the Biden administration, which recently quadrupled tariffs on Chinese electric vehicles to 102.5%. The move was backed by European Union leaders who pledged to raise tariffs on certain Chinese cars to 48%.
According to experts, the primary target of these Western restrictions is battery electric vehicles, including those produced by BYD Co Ltd Class A. Authorities in several countries argue that these vehicles are capturing global markets at a very rapid pace.
In 2023, the value of Chinese electric vehicles imported by Canada surged to $1.6 billion. The number of cars arriving from China at the port of Vancouver increased fivefold. Besides Chinese-made EVs, Canada also imports Tesla vehicles produced at the Shanghai plant.
