Canada is considering raising tariffs on Chinese-made electric vehicles following the White House’s new levies, according to Trade Minister Mary Ng, who is in open dialogue with American partners.
Biden Administration Announces New Tariffs Against China
- Biden administration imposes new tariffs on China, targeting semiconductors, solar cells, and other products.
- U.S. tariff on Chinese-manufactured electric vehicles to be effective this year, increasing from 27.5%.
- Canadians imposes a small tariff of about 6% on Chinese vehicles.
- Canadian main focus is on domestic electric vehicle production, with agreements signed with automakers like Honda and Volkswagen.
Canada’s Auto Sector and US Imports
- Canadian auto sector is highly interconnected with U.S. manufacturers.
- Parts and finished cars flow easily across Ontario and Michigan and Ohio.
- Chinese factories have a small share of Canadain auto market.
- Tesla Inc.’s Model Y vehicles from Shanghai increased car arrivals by over fivefold at Vancouver port last year.