MNI BRIEF: Canada Moves To Tariff Chinese EVs, Mirroring US

Canada is moving to impose tariffs on Chinese electric vehicles following a similar move from the United States, seeking to head off any perception it will become a back door to the North American trade zone before the USMCA is up for review in 2026.

Consultations on tariffs, investment restrictions and measures to limit dumping are being launched, Finance Minister Chrystia Freeland and Trade Minister Mary Ng said Monday in suburban Toronto, near some of the country's major auto assembly lines. “We are going to protect you and defend you from unfair competition” Freeland told a group of autoworkers. Canada’s auto industry is “facing unfair competition from China” and its state-sponsored policy of overcapacity, she said.

U.S. President Joe Biden in May announced tariffs on Chinese EVs would rise from 25% to 100% and the EU has also recently imposed new restrictions. Three-quarters of Canada's exports go to the U.S. and its large auto industry relies on seamless movement of parts across the Michigan-Ontario border. (See: MNI POLICY: Canada Fears US Reaction To Mexico-China Auto Ties)