July 17th, 2024

Canada to start 30-day consultation to impose surtax on Chinese EVs

By The Canadian Press on June 24, 2024.

Finance Minister Chrystia Freeland speaks with reporters in the Foyer of the House of Commons, in Ottawa, Wednesday, June 19, 2024. Freeland is expected to announce this morning a Canadian investigation aimed at protecting Canada's massive investments in the electric vehicle supply chain from unfair Chinese competition. THE CANADIAN PRESS/Adrian Wyld

OTTAWA – Finance Minister Chrystia Freeland says Canada is investigating whether to impose a surtax on imports of Chinese-made electric vehicles.

A 30-day consultation on the issue will begin July 2 to counter what Freeland says is a clear effort by Chinese companies to generate a global oversupply.

Canada’s move comes weeks after both the United States and the European Commission announced plans to impose higher import tariffs on Chinese EVs this summer.

The consultation will seek input on what is driving China’s surging EV exports, including unfair market practices as well as labour and environmental standards.

In addition to a surtax, the consultation will consider whether Canada should change which cars are eligible for the federal EV purchase rebate worth up to $5,000 per vehicle.

It will also look at whether to expand investment restrictions in Canada.

This report by The Canadian Press was first published June 24, 2024.

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