Toronto, Canada — In a move that mirrors similar actions by the US and the European Union, Canada's government has announced a 100% tariff on imports of Chinese-made electric vehicles (EVs). This decision comes after encouragement from US national security advisor Jake Sullivan during a meeting with Canadian Prime Minister Justin Trudeau and cabinet ministers. The tariffs aim to address concerns about China's impact on the global EV market and its state-directed policies related to overcapacity and oversupply.

Canadian Prime Minister Trudeau emphasized the need for a coordinated approach among economies worldwide to prevent a "race to the bottom." In addition to the EV tariffs, Canada will also impose a 25% tariff on Chinese steel and aluminum. Deputy Prime Minister Chrystia Freeland further stated that Canada will explore additional tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals, and solar panels.

China, which has been accused of maintaining an intentional policy of overcapacity and oversupply, has yet to respond to Canada's actions. The move underscores the growing tensions in the global trade landscape and highlights the importance of fair competition in the EV sector.