Canada is reportedly exploring raising tariffs on Chinese-produced electric vehicles (EVs) following the US decision to impose higher levies on these imports.
Canadian Trade Minister Mary Ng mentioned this development during an interview with Bloomberg.
Will Canada Follow the US in Raising Tariffs on Chinese EVs?
According to Ng, Canada is looking carefully at the situation and maintaining open communication with its US partners. She shared this update while in Peru, attending the Asia-Pacific Economic Cooperation forum meetings.
President Joe Biden recently raised tariffs on various Chinese imports, which include EVs, solar cells, steel and aluminum products, and other goods.
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US Tariffs on Chinese EVs
The Biden administration announced these major new tariffs on Tuesday, prompting an immediate response from China. Beijing blasted the move and vowed to take action without providing specifics.
Under Section 301 of the Trade Act of 1974, which Biden used to increase the tariffs, the tax rate on imported Chinese EVs will increase from 25% to 100%, bringing total duties to 102.5% this year. This substantial increase aims to address trade imbalances and protect domestic industries.
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