The Canadian government will impose a 100% tariff on imports of electric vehicles made in China, following in the footsteps of the United States, Canadian Prime Minister Justin Trudeau said Monday.
The Canadian prime minister also announced that the country would continue to impose 25% tariffs on Chinese steel and aluminum.
“Players like China have decided to give themselves an unfair advantage in the global marketplace,” Justin Trudeau said, as quoted by the Associated Press (AP).
The decision comes just weeks after the United States announced plans to impose higher tariffs on electric vehicles made in China.
U.S. National Security Adviser Jake Sullivan urged Canada to follow in the footsteps of the world’s largest economy at a meeting with the Canadian prime minister on Sunday.
Earlier this summer, the Canadian government launched consultations with industry and labor unions to determine possible actions on the issue. Deputy Prime Minister Chrystia Freeland said Canada would act in concert with the United States and the European Union, given that North America has an integrated auto sector.
Currently, the only electric vehicles made in China and imported into Canada are made by Tesla, and are produced at the company’s Elon Musk-owned plant in Shanghai.
Last week, the European Commission proposed revised countervailing duties of up to 36.3% for Chinese electric vehicle manufacturers in the European Union (EU), and also proposed a countervailing duty of 9% for Tesla as an exporter from China.