Ottawa, Canada – Canada has officially imposed surprising economic sanctions against China by imposing a 100% tariff on imports of electric vehicles (EVs) from the Bamboo Curtain country. The policy was announced on Monday (27/8) and will take effect from October 1.
The move came in response to what Prime Minister Justin Trudeau called China’s “deliberate policy of overcapacity.” Trudeau stressed that China does not play by the same rules when it comes to international trade.
“I think we all know that China doesn’t play by the same rules,” Trudeau told reporters.
In addition to the 100% tariffs on electric vehicles, Canada has also announced 25% tariffs on steel and aluminum imports from China. This policy has a direct impact on Tesla, which ships large numbers of Shanghai-made electric vehicles to Canada.
Canadian car imports from China to its largest port, Vancouver, jumped 460% year-on-year in 2023 as shipments of Tesla electric vehicles from China increased.
As a result, shares of the leading electric car maker fell 3% after the tariffs were announced.
Although Tesla has not made any official statement regarding Chinese exports to Canada, this new policy will certainly have a significant impact on the company.
Canada emphasizes that this tariff policy is applied in harmony with other countries around the world.
“What is important is that we do it in harmony and in parallel with other countries around the world,” Trudeau added.
So far, the Chinese embassy in Ottawa has not commented on Canada’s new policy.
For information, China is Canada’s second largest trading partner after the United States.
Canada’s tough measures are expected to spark new tensions in trade relations between the two countries.
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