Canada imposes a 100% duty on Chinese electric cars - on the eve of BYD's entry into the local market

Canada has taken a cue from the United States and Europe by implementing a 100% tariff on electric vehicles imported from China. This move aims to shield domestic automakers from an influx of inexpensive competition.

Interestingly, this restriction coincides with the entry of the largest Chinese manufacturer into the Canadian market. BYD has already established a strong presence in Mexico and is planning to enter North America—though no official announcements have been made, Canada is mentioned in the company’s application to regulators.

BYD Canada is reportedly already in talks with government representatives and has expressed interest in opening dealership centers across the country.

The new 100% tariffs will take effect on October 1, 2024, and will apply to a wide range of electric vehicles and hybrids, including passenger cars, buses, and trucks. This news is particularly unfavorable for Tesla, which is currently the main automaker selling Chinese electric vehicles in Canada, while others may still reassess their plans.

The import of electric cars from China to Canada in 2023 rose by 460% to 44,356 units compared to the same period last year, when Tesla began delivering vehicles manufactured in Shanghai.

“Importantly, we are doing this in a coordinated manner alongside the economies of other countries,” said Canadian Prime Minister Justin Trudeau.

The Chinese Embassy in Canada labeled this move an “act of political dominance,” adding that the country has ignored World Trade Organization (WTO) rules.

“China urges Canada to respect the objective facts, adhere to WTO regulations, promptly rectify its erroneous practices, and refrain from politicizing economic and trade issues.”

China is Canada’s second-largest trading partner, although it still lags significantly behind the United States.

Previously, the EU imposed a 38% tariff on Chinese electric vehicles (with special conditions for Tesla), while the U.S., like Canada, will introduce a 100% tariff starting in September.

Source: arenaev