Canada slashes 100% tariffs on Chinese EVs to 6%
4 months ago
- #Canada-China Relations
- #Electric Vehicles
- #Trade Policy
- Prime Minister Mark Carney announces a new 'strategic partnership' with China, reopening the Canadian border to Chinese electric vehicles (EVs).
- Canada will allow an annual quota of 49,000 Chinese EVs at a 6.1% tariff rate, targeting affordable EVs priced under $35,000.
- In exchange, China lowers tariffs on Canadian canola seed (from 85% to 15%) and lifts restrictions on Canadian lobster and crab.
- The deal aims to spur Chinese joint-venture investments in Canada to strengthen the domestic EV supply chain.
- The move diverges from the US's protectionist stance, potentially making affordable EVs like the BYD Seagull available in Canada soon.
- Critics argue protectionism slows the transition to sustainable transport, while supporters warn of potential market dumping by China.
- Canada's decision may strain relations with the US, which has sought to block Chinese EVs from North America.
- The agreement includes joint-venture incentives, encouraging Chinese EV giants like BYD or CATL to establish operations in Canada.