16.46°C Vancouver

Jun 24, 2024 6:04 PM - The Canadian Press

Canada to announce tariff plan for Chinese EV, battery imports following U.S., Europe

Share On
canada-to-announce-tariff-plan-for-chinese-ev-battery-imports-following-u-s-europe
That plan could change as both Europe and China agreed to negotiations on the matter over the weekend.(Photo: The Canadian Press)

Finance Minister Chrystia Freeland is expected to announce this morning a plan for potential tariffs to protect Canada's electric vehicle supply chain from unfair Chinese competition.

Freeland and International Trade Minister Mary Ng are making a joint announcement this morning following moves this spring by both the United States and Europe to hike import tariffs on Chinese-made EVs.

Before Canada can impose new tariffs, an anti-subsidy investigation must be completed by the Canadian International Trade Tribunal.

Currently, the only Chinese-made EVs imported into Canada are Teslas made at the U.S. tech giant's Shanghai factory.

China is a bigger player in Canada when it comes to batteries and battery components for EVs, industries Canada has invested heavily in over the last four years.

In 2021, almost 80 per cent of all lithium-ion batteries for electric vehicles globally came out of China and the International Energy Agency says almost 60 per cent of global EV sales are now Chinese-made.

Accusations that China has spurred its own EV industry through unfair subsidies led to both Europe and the U.S. retaliating this spring.

U.S. President Joe Biden announced in mid-May that he is hiking tariffs on Chinese EVS from 25 per cent to 100 per cent this year though there is only one Chinese EV currently available in the U.S.

Biden also announced a hike to tariffs on lithium-ion batteries and some other clean energy products including solar cells.

The European Commission is still completing its anti-subsidy investigation but announced two weeks ago that it will impose provisional tariffs of between 17 per cent and 38 per cent on Chinese-made EVs as of July 4.

That plan could change as both Europe and China agreed to negotiations on the matter over the weekend.

Chinese-branded EVs now make up eight per cent of the European market, compared with one per cent in 2019. Europe says its preliminary findings confirmed Chinese EVs are benefiting from "unfair subsidization."

Many Chinese EVs are substantially cheaper than similar European-made models.

Where Canada lands on tariffs will depend on the consultation process. A government source, speaking on the condition they not be named because they were not authorized to speak publicly, told The Canadian Press a brief consultation period usually occurs before imposing precise tariffs.

Prime Minister Justin Trudeau has repeatedly said since the U.S. announcement that Canada was watching very closely and deciding what it will do.

On June 12, the day the European Commission announced its provisional tariffs, Ng told reporters on Parliament Hill that Canada was working on its own plan.

"The status is that we are working on it, and I’ve been very clear about this," she said. "This issue is one that we’re concerned about."

Ng said then she was already talking to Canadian industry.

Typically the process for launching an anti-subsidy investigation starts with a complaint from the industry.

"We’ve invested deeply and heavily in the electric vehicle supply chain," she said.

Since 2020, Canada has attracted more than $46 billion in investments for 13 electric vehicle, battery and battery component manufacturing projects. Ottawa and the provinces have jointly promised up to $53 billion in return, including tax credits, production subsidies and capital investments.

Latest news

carney-taps-top-aide-david-lametti-to-replace-bob-rae-as-un-ambassador
CanadaSep 18, 2025

Carney taps top aide David Lametti to replace Bob Rae as UN ambassador

Prime Minister Mark Carney is appointing his principal secretary and former justice minister David Lametti as Canada's next ambassador to the United Nations. The Prime Minister's Office says Lametti will replace former Liberal leader Bob Rae, who has held the role since 2020. Lametti is the second member of former prime minister Justin Trudeau's cabinet to leave a top role in Carney's office in recent months. Carney's former chief of staff Marco Mendicino was replaced by former UN ambassador Marc-Andre Blanchard, who started working for Carney in July. The Prime Minister's Offic
canada-post-sending-new-offers-to-union
CanadaSep 18, 2025

Canada Post sending new offers to union

Canada Post says it will be sending new offers to the Canadian Union of Postal Workers in an effort to move negotiations forward. The postal service has been in contract talks for almost two years with the union representing some 55,000 postal workers.
rcmp-say-56-million-cryptocurrency-seizure-is-biggest-in-canadian-history
CanadaSep 18, 2025

RCMP say $56-million cryptocurrency seizure is biggest in Canadian history

The RCMP say their seizure of $56 million worth of cryptocurrency from an online platform is the largest in Canadian history. The national police force says the exchange platform — TradeOgre — was used by criminal organizations to launder money. They say their operation to shut down the website is the first time a Canadian police force has dismantled a cryptocurrency exchange. Police say TradeOgre didn't require users to identify themselves and hid the source of its funds. However, they did not announce arrests in the case, saying their investigation is ongoing and that charges may result
conservatives-table-bill-to-make-murdering-an-intimate-partner-a-first-degree-crime
CanadaSep 18, 2025

Conservatives table bill to make murdering an intimate partner a first-degree crime

The Conservatives have introduced a private members’ bill in the House of Commons that would make the murder of an intimate partner a first-degree crime. Conservative public safety critic Frank Caputo says the bill would treat such crimes the way the Criminal Code currently treats the murder of a peace officer. Caputo told a press conference on Parliament Hill today the bill would create a new offence of assaulting an intimate partner. He says the bill would also create a mechanism for judges to order a risk assessment of an individual charged with intimate partner violence who is on release
40-member-provincial-task-force-to-fight-extortion-crisis-in-b-c
BCSep 17, 2025

40 member provincial task force to fight extortion crisis in B.C., 6 extortion related arrests made so far

The B.C. government has announced a provincial extortion task force to investigate the extortion-related files that have become a concern for many areas of the province. The task force will be led by the B.C. RCMP and will consist of a total of 40 members. In addition to the RCMP, this force will include members from the Surrey Police Service, Delta Police Department, Abbotsford Police Department and Metro Vancouver Transit Police. In addition, members of the Canada Border Services Agency and the Combined Forces Special Enforcement Unit and members of the BC Anti-Gang Police Team will also be

Related News