Canada announced new tariffs on Chinese imports, imposing a 100% tariff on all Chinese electric vehicles (EVs) and a 25% tariff on Chinese steel and aluminum imports, effective October 1, Reuters reports.
The tariffs target all EVs from China, including those made by Tesla, which saw its stock drop by 3.2% following the news. Canadian Prime Minister Justin Trudeau justified the tariffs as a response to China’s alleged state-directed over-capacity in these industries. China’s Commerce Ministry condemned the tariffs as disruptive and a violation of World Trade Organization (WTO) rules, accusing Canada of trade protectionism, warning it could harm economic relations between China and Canada.
Canada’s tariffs align with efforts taken by the US and EU to address what they see as unfair trade practices by China. Trudeau mentioned that Canada is considering additional measures, including potential tariffs on chips and solar cells.
