Canada is following the lead of the US and Europe and imposing a 100% duty on electric vehicles imported from China to protect domestic car manufacturers from the influx of cheap competitors.
Interestingly, the restriction coincides with the entry of the largest Chinese manufacturer into the Canadian market. BYD has already established a strong presence in Mexico and plans to enter North America — and although there have been no official announcements, Canada is mentioned in the manufacturer’s application to regulators.
BYD Canada is allegedly already in talks with government officials and has expressed interest in opening dealerships across the country.
The new 100% tariffs will come into effect on October 1, 2024, and will cover a wide range of electric cars and hybrids, including cars, buses, and trucks. At the same time, the news is not excellent for Tesla, which is still the main automaker selling Chinese electric vehicles in Canada, while others may still reconsider their plans.
Imports of electric vehicles from China to Canada in 2023 increased by 460% to 44,356 units compared to the same period last year, when Tesla began delivering electric vehicles manufactured in Shanghai.
«Importantly, we are doing this in a coordinated manner and in parallel with the economies of other countries around the world,» said Canadian Prime Minister Justin Trudeau.
The Chinese Embassy in Canada called the move «an act of political domination», adding that the country ignored the rules of the World Trade Organization (WTO).
«China calls on Canada to respect objective facts, abide by WTO rules, immediately correct its erroneous practices, and refrain from politicizing economic and trade issues».
China is Canada’s second-largest trading partner, although it still lags far behind the United States.
Previously, the EU imposed a 38% duty on Chinese electric vehicles (with special conditions for Tesla), while the United States, like Canada, will introduce a 100% tariff.
Price wars: only 2 out of more than 30 Chinese electric car manufacturers make a profit
Source: arenaev
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