ALBAWABA - The Canadian government, led by Prime Minister Justin Trudeau, announced on Monday that it will impose a 100% tax on electric car imports from China, equivalent to the one levied by the United States and is in line with similar plans unveiled by the European Commission, Reuters reports.
The statement came after U.S. National Security Advisor Jake Sullivan encouraged action during Sunday's discussion with cabinet members and Canadian Prime Minister Justin Trudeau. On Tuesday, Sullivan is scheduled to go to Beijing for the first time.
A 25 percent tariff on imports of steel and aluminum goods from China was also announced by Trudeau, who accused China of not abiding by international norms in areas including labor and environmental regulations, according to AFP.
Over the last several months, the United States and the European Union have slapped tariffs on electric vehicles manufactured in China at 100 percent and 38 percent, respectively.
In Canada, Chinese brands are still relatively unestablished. But the massive Chinese electric vehicle manufacturer BYD formed a Canadian corporation this spring and has said that it plans to attempt to join the Canadian market as soon as next year, according to AP.
Tesla is currently the sole Chinese-made electric vehicle (EV) imported into Canada; however, the American manufacturer might circumvent the levy by providing Canada with EVs manufactured in Germany or the United States.
During an Atlantic coast press conference, Trudeau said that China's excessive manufacturing of electric vehicles and substantial government subsidies for its automotive industry "requires us to act."
“Unless we want to get in a race to the bottom, we have to stand up, and that's what we're doing,” the prime minister added, calling the tariffs a government’s response to an “extraordinary threat.”
