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The new tariff will apply to all EV models and brands including Tesla.
The Canada government said the newly levied taxes are aimed at dealing with China’s oversupply while protecting Canada’s automotive and metal industries.
The value of Chinese electric cars imported into Canada rose from less than $74 million in 2022 to $16.32 billion last year, making China its second-largest auto exporter of following the United States, according to Statistics Canada.
Canada’s latest tariff hike on Chinese EV imports follows those introduced by the US and EU.
The US increased tariffs on Chinese EVs to 100% in May, while doubling of duties on semiconductors and solar cells to 50%, and those on lithium-ion batteries to 25%.
The EU announced on Tuesday August 20 that it will lower the tariffs for EVs imported from China for some automakers, namely Tesla and BYD, revising the initial plan the EU proposed in June, following its anti-subsidy investigation into EV imports from China which started in October 2023.
The new extra tariff for Tesla models imported from China was lowered to 9% from the 20.8% the EU had indicated in July. On top of an existing 10%, China’s BYD now faces a extra tax rate of 17.0% compared with the 17.4% levied in July, Geely 19.3% versus 19.9% and SAIC Group 36.3% from 37.6%.
Definite duties would have to be applied by October 30, according to the EU’s statement.