Canada has decided to impose restrictions on the import of Chinese electric vehicles, as Prime Minister Justin Trudeau's government seeks to align with actions taken by U.S. President Joe Biden's administration in this regard. Trade Minister Chrystia Freeland announced the start of a 30-day public consultation period, which is the first phase before Canada can impose tariffs on Chinese electric vehicles. Freeland stated that the government will also consider changes to the list of electric vehicles eligible for federal consumer incentives and "expand restrictions on investments in Canada" in favor of electric vehicles. She clarified that "all possible tools are on the table."
In a press conference in the Toronto area, Freeland noted that Canada's automotive industry "is facing competition from China in the form of oversupply, which undermines the ability of the Canadian electric vehicle sector to compete in domestic and global markets." Statistics Canada data indicate that the value of Chinese electric vehicles imported by Canada rose last year to 2.2 billion Canadian dollars (61.6 billion USD) compared to less than 100 million Canadian dollars in 2022. Additionally, the number of vehicles arriving from China at the Canadian port of Vancouver increased more than fivefold after Tesla began shipping its Model Y cars produced at its Shanghai factory. While the primary concern of the Canadian government is not Tesla, it is worried about the potential flooding of the Canadian market with cheap Chinese vehicles.
