Canada's government is considering imposing a surtax on imports of Chinese-made electric vehicles, following concerns about a global oversupply generated by Chinese companies. A 30-day consultation period will commence on July 2 to address this issue. This move aligns with recent actions taken by the United States and the European Commission to impose higher import tariffs on Chinese EVs.
The Deputy Prime Minister highlighted the impact of China's intentional state-directed policy of overcapacity on Canada's automotive sector, which supports nearly 550,000 jobs. The consultation aims to investigate the reasons behind China's increasing EV exports, including unfair market practices and labor and environmental standards.
In addition to the proposed surtax, the consultation will explore potential changes to the federal EV purchase rebate, currently valued at up to $5,000 Canadian per vehicle. There will also be discussions on expanding investment restrictions in Canada to address the issue.
Canada intends to collaborate with its allies in the U.S. and the EU to address the challenges posed by Chinese oversupply. The government aims to prevent Canada from becoming a dumping ground for these products, emphasizing the importance of fair competition in the global market.
U.S. President Joe Biden has previously raised concerns about Chinese government subsidies for EVs, highlighting the unfair advantage they provide to Chinese companies in international trade.
