According to Bloomberg, Canadian Minister of Trade Mary Ng has stated that Canada is studying whether it needs to increase tariffs on electric cars imported from China, following the announcement of significant new tariffs on Chinese-made electric cars by the White House.
Ng, speaking during a telephone interview while attending the Asia-Pacific Economic Cooperation forum in Peru, said, "We are looking very closely at this issue, and we have had open conversations with our American partners."
The Biden administration announced new tariffs on China last week, primarily targeting electric cars, semiconductors, solar panels, and other products. The new tariffs on electric cars manufactured in China by the United States will take effect this year.
Currently, Canada imposes small tariffs of about 6% on Chinese cars. When asked whether Canada would follow the United States in adjusting tariffs on China, Ng reiterated that the Canadian government is in communication with U.S. officials regarding this policy, stating, "We are carefully considering this issue."
Ng emphasized that Canada's focus is on domestic production of electric cars. She noted that the government led by Prime Minister Justin Trudeau has signed agreements with automakers such as Honda and Volkswagen to produce electric cars, batteries, or components in Ontario, Canada's most populous province.
While Chinese-made cars have a very small share in the Canadian car market, the quantity of cars exported from Tesla's Shanghai factory to the country has significantly increased recently.
After Tesla began exporting the Model Y from China, the number of cars arriving at Vancouver ports from China increased more than fivefold in 2023, reaching approximately 44,400 vehicles.
