Canada eyeing new tariffs on Chinese EVS after moves by US, EU

PM Trudeau under pressure to follow the lead of Western counterparts

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Prime Minister Justin Trudeau's government is preparing potential new tariffs on Chinese-made electric vehicles (EVs) to align Canada with actions taken by the United States and European Union, according to people familiar with the matter.

The government still has to make the final decision on how to proceed, but it is likely to announce soon the start of public consultations on tariffs that would hit Chinese exports of EVs into Canada, according to officials who spoke on condition they not be identified.

Mr Trudeau has been under increasing pressure at home and abroad to follow the lead of US President Joe Biden's administration, which announced in May a plan to nearly quadruple tariffs on Chinese-manufactured EVs, up to a final rate of 102.5 per cent.

The European Union said last week it plans to increase tariffs on Chinese EVs, taking those levies to as high as 48 per cent on some vehicles.