In a move mirroring recent actions by the United States (U.S.) and European Union (EU), Canada’s Prime Minister Justin Trudeau has announced plans to impose a 100% tariff on imported Chinese electric vehicles (EVs).

Trudeau revealed the decision citing the need to “level the playing field for Canadian workers” and protect domestic manufacturing from what he described as unfairly subsidized Chinese imports.

The new tariff, set to take effect on October 1, 2024, will apply to electric and certain hybrid passenger vehicles, trucks, buses, and delivery vans originating from China. As a result, this action arrives as part of a broader strategy to counter what Trudeau called China’s “intentional, state-directed policy of over-capacity” in the global marketplace.

In addition, these measures align closely with similar actions taken by the U.S., Canada’s largest trading partner, and follow recent moves by the EU to impose tariffs of up to 36.3% on Chinese EV imports.

Read More: Biden Administration Confirms 100% Tariff on Chinese EVs For U.S. Interests

Earlier, BYD was preparing to enter the Canadian market with plans to reportedly explore retail opportunities and the company has been making inroads in Mexico as well. With these new tariff, they are expected to significantly impact these plans.

Currently, Tesla is the only automaker selling Chinese-made EVs in Canada, with imports from its Shanghai plant having surged in recent years. The tariff will apply to these Shanghai-made Teslas, likely influencing the company to supply the Canadian market from its U.S. or European plants instead.

As Canada positions itself as a critical part of the global EV supply chain, this represents a major step in protecting its burgeoning domestic EV industry. Nonetheless, this also marks another country setting tariffs on Chinese EVs that will overall affect them and its progress to accelerate electric mobility in the global EV market.

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