Adding a new facet to the trade conflict between major economies in the world, according to a new development, Canada is set to impose a 100 per cent tariff on Chinese electric vehicles.
Canada Imposes Tariff On EVs
This comes barely a few months after the United States upped the ante in the trade war with China by imposing a monumental tariff regime on major Chinese products that are shipped to India.
In addition to the 100 per cent tariff imposed on electric vehicles, the North American nation has also imposed a 25 per cent tariff on imported steel and aluminium from China. | File Image/ X
Here, of course, the main focus lies on electric vehicles. The US, like Canada, also imposed the 100 per cent tariff regime on the cars.
In addition to the 100 per cent tariff imposed on electric vehicles, the North American nation has also imposed a 25 per cent tariff on imported steel and aluminium from China.
Interestingly, these tariffs would also apply to all cars shipped from China, including Elon Musk's Tesla cars that are assembled or made in China.
Elon Musk has yet to respond to this development. | AFP
Elon Musk has yet to respond to this development.
According to reports, Canadian imports of autos from China to its major port, Vancouver, increased by 460 per cent year on year to 44,356 in 2023, when Tesla began delivering Shanghai-made EVs to Canada.
These developments come to the fore as governments around the globe have focused extensively on shielding their own indigenous companies and industries, especially in the energy and transition sectors, including EV production.
Protectionism On The Rise
This has led to a new wave of 'Protectionism' enveloping major trade zones, including Europe and the Americas. Many of these nations fear the impact of mass-produced, cost-effective or cheap Chinese cars flooding the markets, thereby running the local companies out of business.
Some of the most crucial names in the Chinese EV market include Geely and BYD. | BYD Atto 3
Some of the most crucial names in the Chinese EV market include Geely and BYD.
In addition to this, Chinese measures to double down on exports, trying to 'manufacture' its way out of the economic slowdown, have not gone down well with major economies and its trading partners.
These developments have resulted in greater scrutiny of Chinese exports. In the past, many trading partners have accused the Chinese of dumping their goods, thereby selling cheaper products.
