Tesla is reportedly seeking lower tariffs from the Canadian government on their electric vehicles (EVs) made in China. The company is making the request after being successful in lowering their tariffs in Europe.
On Monday the Canadian government announced its intentions to implement a 100% tariff on Chinese-made EVs imported into the country. This move would affect Tesla, which currently imports the Model Y and Model 3 Performance built at Giga Shanghai.
Ahead that official announcement, Tesla reportedly approached the government to request lower tariffs. According to a source that spoke with Reuters, Tesla is seeking a similar rate imposed by the European Union (EU). Initially the EU proposed a 21% tariff on Tesla vehicles imported from China, before lowering it to 9%.
Other Chinese automakers will face a 36% tariff in Europe.
The same source said Tesla has not reached out to the government since Monday’s announcement. The tariffs will come into effect on October 1, 2024.
Along with the tariffs, which also cover Chinese aluminum and steel, the Canadian government is also eliminating the $5,000 federal rebate for EVs made in China. These measures are being put in place to counter what Prime Minster Justin Trudeau describes as “China’s intentional, state-directed policy of over-capacity” and its disregard for global trade rules.
