The Canadian government has launched a 30-day consultation period to gather feedback on potential tariffs on Chinese-made electric vehicles (EVs). These potential tariffs, along with other measures being considered, are part of a broader strategy to counteract what it perceives as unfair competition from Chinese manufacturers, which benefit from extensive state subsidies and lenient labour and environmental regulations.
The consultation period started on July 2, 2024, and aims to explore various measures to protect Canada’s EV industry and its workers from an influx of low-cost Chinese EVs. This move follows similar actions by the United States and the European Union, which have both increased tariffs on Chinese EVs to safeguard their domestic markets.
The government’s consultation paper outlines concerns about Chinese policies, including significant subsidization, lax labour and environmental standards, and other practices that artificially reduce production costs.
The consultation document does not specify the exact tariff rates under consideration, but seeks input on appropriate levels for various vehicle classes. The focus is on finished vehicles rather than components like batteries, suggesting a targeted approach to addressing the perceived unfair competition.
The government is also exploring whether to exclude Chinese-made EVs from federal consumer incentives, which could further discourage their importation. Additionally, the consultation seeks feedback on possible restrictions on Chinese investments in Canadian EV manufacturing facilities.
The consultation process will run until August 1, 2024, after which the government will review the feedback and decide on the appropriate course of action.
You can read the government’s full paper on potential policy responses here.
If you want to participate, you can email your comments and feedback to tariff-tarif@fin.gc.ca, with “EV consultation” in the subject line. Comments and feedback can also be sent by mail to:
International Trade Policy Division (EV Consultations)
Department of Finance
90 Elgin Street, 14th Floor
Ottawa, Ontario K1A 0G5
