Canada cuts tariff on Chinese EVs
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President Donald Trump set up the joke, and now Canada has delivered the punchline. Today Ottawa agreed to slash tariffs on 49,000 Chinese-made electric cars a year as part of a wider thaw that also lowers Chinese duties on Canadian canola and other farm goods. Prime Minister Mark Carney framed the reset as adapting to “new global realities.”
The U.S. worries that China will get a broader foothold in North America as Washington takes an increasingly hard line on Canadian vehicles and parts.
Chinese automakers have been making inroads around the world with growing sales of their high-tech, stylish and affordable electric vehicles. That has had competitors concerned even before Canada this week agreed to cut its tariffs on EVs in exchange for concessions on Canadian farm products.
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Chinese Cars Are Officially Coming To Canada
In a massive deal reached today, Canada will drop the country’s 100% tariffs on Chinese electric cars.As reported by AP, Canadian Prime Minister Mark Carney met with Chinese Leader Xi Jinping and agreed to cut the 100% tariff on Chinese made electric cars in exchange for China lowering the import tax on canola seeds,
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Up to 49,000 EVs a year from China will be allowed into Canada, initially, which Carney says is less than three per cent of the overall car market. That will increase to approximately 70,000 over five years.
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