Canada Slaps 100 Percent Tariff on Chinese-Made EVs

This BYD electric car sells for US$12,000 in China

The big news today in Canada was Prime Minister Justin Trudeau announcing a 100 percent surtax on Chinese-made electric vehicles (EV) from October 1, and that would extend to Teslas that were manufactured in Shanghai.

He said this tariff will "level the playing field for Canadian workers" and allow Canada's EV industry to compete at home, in North America, and abroad.

Would you buy this Mini EV for US$5,000?

A Chinese-made EV can range from US$12,000 to US$42,000.

Canada is following what the United States did back in May, though a senior government official said Canada was not enacting the tariffs because of American pressure. 

While the Canadian auto industry and workers are cheering this announcement, the biggest losers are consumers who are keen to wean off fossil fuels, but can't afford to buy EVs on the market now.

If Chinese-owned BYD (build your own dreams) cars were available in Canada, even more people would probably get on the EV bandwagon, for the country to be emission-free by 2035, but it seems Canadian automakers and workers have been dragging their feet in finding ways to make cheaper EVs.

"Unfortunately, Canada made a decision today that will result in fewer affordable electric vehicles for Canadians, less competition and more climate pollution," said Joanna Kyriazis, director of public affairs at Clean Energy Canada.

"Not only could today's announcement have a chilling effect on future EV sales, it could drive up EV prices and slow adoption in the near-term as well," she said.

Teslas made in Shanghai will be taxed 100 percent

Ironically though, Canada isn't allowing any Chinese automakers in anyway, though BYD could possibly skirt around the tariffs by opening up a factory in Canada or the United States. 

In the meantime, the Chinese are obviously not pleased with Trudeau's announcement, saying: "This move will undermine the normal economic and trade cooperation between China and Canada. It harms the interests of Canadian consumers and enterprises, and is not conducive to Canada's green transformation and global efforts to combat climate change," a spokesman for the Chinese foreign ministry said.

Will this result in increasing trade tensions between China and Canada? We hope not...