Canada to hit China with tariffs on electric vehicles, steel

Canada is set to impose new tariffs on Chinese-made electric vehicles, aluminum, and steel as part of its efforts to protect domestic industries and align with Western allies. 

The government plans to introduce a 100 per cent tariff on electric cars and a 25 per cent tariff on steel and aluminum, according to sources familiar with the matter who requested anonymity due to the sensitive nature of the issue, Caliber.Az reports citing foreign media.

Prime Minister Justin Trudeau is expected to announce these measures during a cabinet meeting in Halifax, Nova Scotia.

The move comes as Canada closely monitors the Biden administration's increased tariffs on Chinese products, including electric vehicles (EVs), batteries, solar cells, and steel.

Given that Canada's auto sector is closely integrated with that of the US, with a significant portion of its production exported south, this decision aims to address what Finance Minister Chrystia Freeland describes as "unfair competition" from China’s state-driven overcapacity in the EV sector.