The Canadian government has imposed a 100% tariff on Chinese-made electric vehicles, aiming to protect domestic industries and promote fair competition. The tariff is expected to increase the cost of Chinese-built EVs in Canada, potentially affecting consumer choices.
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| The Canada's 100 percent EV tax related move is aimed at protecting domestic industries and countering unfair trade practices. Symbolic image |
OTTAWA, Canada – August 27, 2024:
In a significant move aimed at protecting domestic industries and promoting fair trade, Canada has imposed a 100% tariff on Chinese-made electric vehicles (EVs). This substantial tax increase, which takes effect on October 1, 2024, is designed to counter what the Canadian government perceives as unfair trade practices by China.
The decision to impose the tariff comes in response to concerns about China's "intentional, state-directed policy of overcapacity" in the EV sector, which Canadian officials argue undermines the ability of domestic manufacturers to compete fairly. The tariff is expected to significantly increase the cost of Chinese-built EVs in Canada, potentially making them less attractive to consumers.
Despite the tariff, China remains a major player in the global EV market. The country is the world's largest manufacturer of EVs and its carmakers have quickly gained a significant share of the market. While Chinese car brands are still not a common sight in Canada, some, like BYD, have taken steps to enter the country's market.
Canada, on the other hand, has been actively pursuing strategies to become a key part of the global EV industry. The country has struck deals worth billions of dollars with major European carmakers, aiming to attract investments and create jobs in the automotive sector.
The imposition of the 100% tariff on Chinese EVs is a significant development in the global EV market. It remains to be seen how this move will impact the competitiveness of Chinese-made EVs in Canada and the overall dynamics of the Canadian EV market.