Canada's Strategy to Protect EV Market from Chinese Imports

Canada 's Response to Chinese - Made Electric Vehicles

An automotive sector executive predicts Canada will impose tariffs on Chinese - made Electric vehicles and eliminate federal subsidies for these imports due to concerns about potential malware or spyware risks . Ottawa is currently probing the unfair trade practices of Chinese electric vehicles and considering imposing surtaxes on these imports.

The Canadian government 's consultations , led by Deputy Prime Minister Chrystia Freeland , are focused on protecting the country 's EV industry from the overproduction of Chinese - made vehicles that are flooding global markets . There are worries about the impact of these vehicles on North American manufacturers and government investments in the EV sector , which have promised substantial subsidies to foreign automakers.

Flavio Volpe , president of the Automotive Parts Manufacturers Association , expects Canada to act swiftly and apply significant tariffs on Chinese - made electric vehicles following the end of the consultation period . This move is likely in response to the actions taken by the United States and the European Union , which have imposed tariffs of up to 100 per cent and 37.6 per cent , respectively.

The concern is that the influx of Chinese electric vehicles could replicate what happened with solar panels , where China flooded foreign markets , subsidized costs , and undermined foreign manufacturing capacity . This threat has prompted calls to remove Chinese - made EVs from federal incentives for consumers and create a level playing field for North American manufacturers.

Impact on Canadian EV Market and Trade Relations

The rise of Chinese - made electric vehicles in Canada has been significant , with imports reaching .2 billion in 2023 compared to 4 million in 2022 . While most of these vehicles are from U.S. automaker Tesla 's Shanghai factory , Chinese companies are gaining traction in the market . Concerns about data privacy and potential espionage have also been raised , as Chinese regulations differ from Canadian standards.

Despite warnings of retaliation from China , Ottawa remains committed to protecting its auto workers and EV industry from unfair trade practices . The goal of achieving 100 per cent EV sales by 2035 faces challenges , including the need for lower prices to encourage mass adoption . Higher tariffs may impact consumer prices , creating a delicate balance between protecting domestic workers and promoting EV growth in Canada.

In conclusion , Canada 's response to Chinese - made electric vehicles reflects a broader effort to safeguard its EV industry , balance trade relations , and address potential risks associated with foreign imports . The outcome of ongoing consultations and policy decisions will shape the future of the Canadian automotive sector and its transition to electric mobility.