Tesla Pushes For Lower Tariffs On Its Chinese EVs In Canada Ahead Of 100% Duty Deadline

Tesla has reportedly approached the Canadian government to request lower tariffs on its Chinese electric vehicles (EVs) in response to the country’s recent announcement of a 100% tariff on them that is set to take effect on October 1, 2024.

According to Reuters, Tesla approached Canadian officials even before the official announcement of the new tariffs. The company reportedly requested a rate similar to what it recently secured in the European Union (EU), where it faces a 9% tariff on its Chinese EVs. 

Moreover, Tesla’s actions in Canada mirror its successful strategy in Europe, where it initially faced a 20.8% tariff but managed to negotiate a reduction to 9% based on a review of the specific subsidies it receives in China.

As for the potential impact on Tesla, there would be a major impact on its business. The company has been importing Model 3 and Model Y EVs from its Shanghai plant to Canada, which those models are the most popular ones in its EV lineup. 

While Tesla is currently the primary exporter of Chinese EVs to Canada, the Canadian government’s concerns extend beyond Tesla. Officials are wary of the potential influx of cheaper EVs from Chinese automakers in the future. In response, Canada’s additional 100% on Chinese EVs is unveiled and follows similar measures taken by the United States (U.S.) and the European Union (EU).

Read More: Canada Announces 100% Tariff On Chinese EV To Shield Its Automotive Industry

As the October 1 deadline approaches, it remains to be seen whether Tesla will succeed in negotiating lower tariffs for its Chinese EVs in Canada. The outcome could have significant implications not only for Tesla but for the broader landscape of EV imports and competition in the Canadian market.

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