ELECTRIC CARS CAUSE DISCORD AROUND THE WORLD

One more barrier for the Asian giant? Canada has just released a statement confirming that as of October 1, 2024, it will impose a 100% tariff on electric vehicles manufactured in China. Likewise, on October 15, 2024, a 25% tariff on steel and aluminum manufactured in the Asian giant will come into force.

The European Union has also announced its intention to impose new tariffs on electric vehicles imported from China, but these will be lower than those already proposed by Canada and the United States.

In May 2024, the United States imposed a 100% tariff on electric vehicles from China to protect the domestic market, since these assemblers are subsidized by their government, which allows them to sell their vehicles at a lower price. This causes an unfair practice that may threaten the viability of automotive companies in the United States.

In October 2024, Canada joins other countries such as the United States and the European Union in increasing tariff barriers for the importation of electric vehicles from China and does so in parallel with them. This 100% tariff will be in addition to the existing 6.1% tariff.

The tariff will be imposed on all types of electric vehicles from the Asian giant, including cars, trucks, buses, delivery vans, among others.

The Canadian government is taking such measures to protect its domestic manufacturers, just as one of its largest trading partners, the United States, did. In addition, the government claims that the Asian country has displaced Canadian workers in the automotive and metalworking industries.

Justin Trudeau, Prime Minister of Canada, seeks to transform his nation's automotive sector to make it a world leader in the vehicle manufacturing of tomorrow. He is committed to ensuring the security of his domestic market.

Currently, Canada's automotive sector is strongly tied to the U.S. market, as its largest vehicle production is exported to its U.S. trading partner, the U.S.

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How does China respond?

For its part, China will take the necessary measures to protect the rights of its national companies. At the same time, it assures that the tariffs to be imposed by Canada this October 2024 endanger the interests of Canadian companies and consumers.

The implementation of tariff barriers from different nations, the United States, Canada and the European Union, seeks the security of the national industry. However, China has taken such measures as a commercial offense that puts at risk the international transactions currently carried out with the United States and Canada.

This affectation will increase the final cost and availability of a great number of articles, which will have an impact on the economy of the citizens.

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