Canada targets ‘unfair’ Chinese EV overcapacity with tariff threat

By Zi-Ann Lum | 06/25/2024 12:08 PM EDT

Prime Minister Justin Trudeau’s government has been under pressure to follow recent moves by the U.S. and EU to sharply raise tariffs on Chinese imports, including on electric vehicles and batteries.

Canadian Finance Minister Chrystia Freeland delivers remarks.

“We are living in a world right now where China is taking advantage of the global economic system,” Deputy Prime Minister and Finance Minister Chrystia Freeland told reporters inside a Martinrea auto parts facility in Vaughan, Ontario. Kevin Dietsch/Getty Images

OTTAWA — It’s Canada’s turn for tough talk with China on electric vehicle tariffs.

Deputy Prime Minister and Finance Minister Chrystia Freeland announced plans Monday to launch a 30-day consultation period on July 2 for new policies that seek to beat back “unfair” Chinese trade.

The government is playing with the idea of a new surtax on Chinese EV imports and rule changes to federal EV rebates, Freeland said. She added that Ottawa is open to “broader restrictions,” including duties on Chinese-made batteries.

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“We are living in a world right now where China is taking advantage of the global economic system,” Freeland told reporters inside a Martinrea auto parts facility in Vaughan, Ontario.

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