Canada introduces 100% tariff on Chinese electric cars: new restrictions on the market

Canada has announced the introduction of a 100% tariff on imports of Chinese electric vehicles, including popular Tesla models, from October 1. The decision is part of a new strategy to curb Chinese manufacturing capacity, similar to measures already in place in the United States and the European Union. In addition, Canada also imposed a 25% tariff on steel and aluminum imports from China. This is reported by Reuters.

This decision was the result of a sharp increase in imports of Chinese cars to Canada, which increased by 460% in 2023, in particular, a significant part of these imports are Tesla electric cars. Canadian Prime Minister Justin Trudeau said these measures are a response to China's aggressive industrial policy and stressed that they will be introduced in sync with other partner countries.

China has already expressed its displeasure with the new tariffs, warning that such actions could seriously disrupt global industrial and trade supply chains. Representatives of the Chinese government emphasized that these measures are a violation of the rules of the World Trade Organization (WTO) and an example of trade protectionism, which can negatively affect the world economy.

Tesla shares fell 3.2% after the new tariffs were announced. Analysts suggest that the company, in order to avoid tariffs, may change its logistics strategy and start supplying cars to Canada via the United States. This will reduce financial losses and maintain competitiveness on the Canadian market.

Canada is also considering additional tariffs on other Chinese goods, such as chips and solar cells. If passed, these measures could further strain trade relations between Canada and China, creating new challenges for the global economy.