TORONTO —
Canada’s government announced Monday it will impose a 100% tariff on imports of Chinese-made electric vehicles that matches U.S. tariffs and follows similar plans announced by the European Commission.
The announcement came after encouragement from U.S. national security adviser Jake Sullivan during a meeting with Canadian Prime Minister Justin Trudeau and cabinet ministers on Sunday. Sullivan will make his first visit to Beijing on Tuesday.
Trudeau said Canada will also impose a 25% tariff on Chinese steel and aluminum.
“Actors like China have chosen to give themselves an unfair advantage in the global marketplace,” he said.
There has been no response from China so far.
Chinese officials are likely to raise concerns with Sullivan about the U.S. tariffs as Beijing continues to repair its economy after the COVID-19 pandemic. In May, U.S. President Joe Biden imposed harsh new tariffs on Chinese electric vehicles, advanced batteries, solar panels, steel, aluminum and medical equipment.
“The United States believes that a united front, a coordinated approach on these issues is in the best interest of all of us,” Sullivan told reporters on Sunday.
Biden has said Chinese government subsidies for electric vehicles and other consumer goods ensure that Chinese companies do not have to make a profit, giving them an unfair advantage in global trade.
Chinese companies can sell electric vehicles for as little as $12,000. China’s solar cell plants and steel and aluminum factories have enough capacity to meet much of the world’s demand. Chinese officials say their output keeps prices low and will help a transition to a green economy.
“We are doing this in alignment, in parallel, with other economies around the world that recognize that this is a challenge we all face,” Trudeau said of the new tariffs. “Unless we all want to get into a race to the bottom, we have to stand up.”
The only Chinese-made electric vehicles currently imported into Canada are those from Tesla, which are built at the company’s Shanghai factory.
