Tariffs

The threat of tariffs and an all-out trade war over Chinese EVs is expanding globally, and Canada is reportedly joining the turmoil. The Canadian government is preparing tariffs on Chinese-made EVs to align with the US and European Union, which have already proposed heavy duties to deter “unfair” competition imported from overseas.

As anticipated, China and its massive network of EV OEMs are not pleased with the EU Commission’s recent decision to impose tariffs on Chinese-built vehicles. In retaliation, Chinese automakers have implored their government to increase tariffs on imported European cars.

Ten days after the Biden administration introduced a 100% tariff on on several categories of Chinese goods, including EVs, China has threatened to retaliate with tariffs on its own vehicle imports. Those threats are also targeted at the EU, as China’s Ministry is requesting the results of a recent probe while imploring Europe not to take the same action as the United States.