Canadian Prime Minister Justin Trudeau emphasized that this measure is part of a broader strategy to counter China's trade policies, which he described as not conforming to international standards. The tariff decision follows a sharp increase in Chinese automobile exports to Canada, with a 460% surge in shipments observed last year through Vancouver, largely driven by Tesla’s exports of its Model 3 sedan and Model Y crossover.
This tariff is not an isolated measure; Canada has also introduced a 25% tariff on Chinese steel and aluminum. The Trudeau administration's approach mirrors the stance of U.S. President Joe Biden, who imposed similar tariffs on Chinese goods, including EVs and other strategic commodities, earlier this year. Trudeau indicated that further measures, possibly targeting sectors like semiconductors and solar cells, may be forthcoming.
The decision underscores the growing trade tensions between Canada and China, Canada’s second-largest trading partner. Although the specifics of how these tariffs will impact consumer prices and the broader Canadian automotive market remain to be seen, the move signals a significant shift in Canada’s trade policy, reflecting a coordinated effort with global allies to challenge China's economic practices.
As the October deadline approaches, industry stakeholders and policymakers will be closely monitoring the ramifications of these tariffs, particularly regarding their impact on the EV market and Canada’s broader economic relations with China.