Canada’s 100% tariff on Chinese-made EVs under review

The 100 per cent tariff imposed by the federal government on Chinese electric vehicles in October 2024 is currently under review.

That is according to a CTV News article: they noted that Heath MacDonald, Canada’s Agriculture Minister, said the decision to either do away with the tariffs or reduce them is being reviewed — but that the impacts on other sectors would be considered.

“The prime minister did say there is an EV review. We will see where that leads … the discussions are ongoing,” said Macdonald, according to the CTV News article. China has not yet communicated what it wants. 

Based on a Nanos Research survey with CTV News, more than one in six Canadians support the removal of the federal government’s tariff on all Chinese-made EVs. The survey looked at the views and support of Canadians on trade and tariff issues between Canada and the United States, and also Canada and China.

Twenty-nine per cent support the removal of the tariff in hopes that China would remove its tariffs on Canadian crops, and 33 per cent somewhat support it. Another 16 per cent oppose a removal and 13 per cent somewhat oppose it.

Inside EVs said easing the tariff could “give a boost to Canada’s flagging EV market.” They noted data from the federal government highlighting a significant 39.2% year-over-year decline in EV sales. This, even as the number of new vehicles registered in Canada has climbed in the second quarter of the year.

The media outlet also said there are not many EVs available in Canada for less than $45,000. “Just like the U.S.,” they said, “Canada faces a shortage of affordable electric models. But an influx of tariff-free Chinese electric cars that come feature-packed and are affordable could sway buyers back into EVs and accelerate the country’s electrification.”

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