Canadian authorities announced on Monday plans to increase tariffs on electric vehicles and batteries made in China, aligning with similar decisions from the United States and the European Union.
Canada's automotive sector "faces unfair competition from a deliberate policy of (developing) overcapacity (production) decided by the state (China), which is harming the electric vehicle sector in Canada and its ability to compete in the domestic and global markets," said Deputy Prime Minister Chrystia Freeland in a press conference.
"Chinese manufacturers are deliberately creating a global oversupply that harms electric vehicle manufacturers worldwide," she stated.
A 30-day consultation with the industry and unions will begin on July 2 regarding potential actions to address this situation. such as an import surtax on Chinese electric vehicles.or that these units would not be eligible for federal subsidies.
Freeland stated that the government seeks to "level the playing field, prevent oversupply, and the transshipment (of vehicles) through Canada," whose automotive sector is fully integrated with that of the United States.
"Everything is on the table," she clarified.
The EU indicated this month that it will impose additional tariffs of up to 38% on imports of electric vehicles from China starting in July, following an anti-dumping investigation.
In May, the U.S. president, Joe Biden, announced that he would quadruple customs tariffs on these cars to 100%, a decision that China denounced as a violation of World Trade Organization rules.
The automotive sector of Canada manufactures over 1.5 million vehicles annually and represents about 13 billion dollars for the Canadian economy, according to official data.
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