Canada to impose tariffs on electric vehicles and steel from China

Canada will impose new tariffs on electric vehicles and Chinese-made aluminum and steel, siding with Western allies and taking measures to protect domestic producers.

The government plans to announce a 100% tax on electric vehicles and 25% on steel and aluminum, according to people familiar with the matter, speaking on condition they not be named as the matter is still private. Prime Minister Justin Trudeau is expected to unveil the policy in Halifax, Nova Scotia, where he has gathered with the rest of his cabinet for a series of meetings on the economy and foreign affairs.

Canada, an export-driven economy that relies heavily on trade with the U.S., is closely watching the Biden administration's moves to build a much higher tariff wall against Chinese electric vehicles, batteries, solar panels, steel and other products. Canada's auto sector is closely integrated with that of its closest neighbor: the vast majority of its passenger vehicles, 1.5 million units last year, are exported to the United States.

Finance Minister Chrystia Freeland, the most powerful person in Trudeau's cabinet, has been one of the most vocal advocates for a tougher approach to Chinese auto exports and closer trade relations with the United States.
Steel and aluminum producers in Canada have also publicly and repeatedly called on the government to restrict Chinese access, saying Xi's industrial policies are allowing Asian powerhouses to unfairly flood foreign markets, putting local jobs at risk.

“China is not playing by the rules,” Catherine Cobden, president and CEO of the Canadian Steel Association, told reporters earlier this month. “The government should have no illusions about this.”