The only China-made EVs currently imported into Canada are from Tesla, and local Chinese branded EVs have yet to be sold in Canada.
Canada launched a 30-day consultation on July 2 as planned to discuss imposing restrictions, including additional tariffs, on electric vehicles (EVs) imported from China.
"As first announced on June 24, 2024, Canada is today launching a 30-day consultation, from July 2, 2024, to August 1, 2024 on potential policy responses to protect Canada's auto workers and its growing EV industry from unfair trade practices, and prevent trade diversion resulting from recent action taken by Canadian trading partners," Canada's Department of Finance said in a July 2 statement.
The consultations are intended to solicit input on potential policy responses, including the imposition of a surtax, as well as possible additional measures such as adjustments to the federal Incentives for Zero-Emission Vehicles (iZEV) program and investment restrictions, according to the statement.
The consultations also seek views on cyber and data security related to protecting the privacy of Canadians and Canada's national security interests, the statement said.
The Canadian government is also considering perspectives on policies driving China's overcapacity and surging exports of EVs, including labor and environmental standards, and unfair and non-market practices, the statement said.
Canada's move follows US and European Union measures to impose restrictions on Chinese EVs.
The US government announced plans in May to nearly quadruple tariffs on China-made EVs, with a final rate as high as 102.5 percent.
The European Union said on June 12 that it plans to raise tariffs on Chinese EVs, with some vehicles facing additional tariffs of up to 38.1 percent on top of the original 10 percent tariff.
It's worth noting that the only Chinese-made EV currently imported into Canada is that of US tech giant Tesla (NASDAQ: TSLA), manufactured at the company's Shanghai plant. There are currently no Chinese-branded EVs being sold or imported here, according to a report by Canada's CTV News last month.
Tesla is subject to a 6 percent import duty, which is currently the rate applied to any Chinese-made car, but most models qualify for a $5,000 rebate, according to CTV News.
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