China warns Canada of retaliatory actions in response to imposing 100% tariffs on electric vehicles.
The extra taxes would negatively impact trade and economic connections between China and Canada, negatively influence consumer and business interests, and delay the transition towards a sustainable economy, the Chinese embassy added.
Last Monday, Canada announced a 100% tax increase on electric automobiles originating from China. This additional tax will be implemented on top of the current 6.1% import tax that took effect in October. These levies will reportedly be applied to electric vehicles, certain hybrids, trucks, buses, and delivery vehicles.
Hefty subsidies from the People's Republic and an excessive production of electric vehicles have prompted Canada's government to intervene, as stated by Canadian Prime Minister Justin Trudeau. Additionally, a 25% tax increase on steel and aluminum products will be implemented starting October 15th.
Before Canada, the US had implemented taxes up to 100%. The EU has also declared retaliatory taxes, although significantly lower, ranging from 0% to 36.3%.
In response to China's significant subsidies and high production of electric cars, Canada imposed a 100% tax increase on imported electric automobiles from China, affecting not only cars but also certain hybrids, trucks, buses, and delivery vehicles. This move could potentially encourage the growth of locally produced electric cars in Canada, contributing to its transition towards a sustainable economy.
