Can’t Let China ‘Wipe Out’ Canadian Industry, Freeland Says as Ottawa Mulls EV Tariffs

Canadian industry needs to be protected from Chinese “oversupply,” Deputy Prime Minister Chrystia Freeland says, as her government mulls tariffs on Chinese electric vehicles (EVs) similar to the United States.
Ms. Freeland’s comments followed earlier remarks from Prime Minister Justin Trudeau, who hinted at the possibility of tariffs on China following the U.S. announcement, but did not commit to similar action.
“We are going to watch carefully what the U.S. is doing, and we will make decisions on how to make sure we’re protecting Canadian automakers, Canadian auto workers, and the Canadian economy at the same time,” Mr. Trudeau said shortly after meeting with U.S. Vice-President Kamala Harris on the sidelines of an event held in Philadelphia on May 21.
Ms. Freeland also expressed concern about Beijing’s practices, noting that state-directed economic policies are leading to overcapacity and oversupply in sectors like steel, aluminum, critical minerals, and manufacturing, which she characterized as “not playing by the rules.”
Chinese-made EV exports grew by 70 percent from 2022 to 2023, the White House release stated, warning that this growth is “jeopardizing productive investments elsewhere.”
In Canada, EV imports from China also saw a surge recently, coinciding with Tesla’s shift from the United States to Shanghai factories for Canadian sales.
As part of the plan, the government is also offering a $5,000 incentive for EVs. Under Canada’s model, any electric vehicle that costs less than $55,000 qualifies for the $5,000 incentive. That means purchases of Tesla’s Chinese-made Model 3 and Model Y cars qualify.
Canada and the U.S. have been aligning their EV industries in recent years, including  around critical minerals, batteries, and EV manufacturing.
Canada has made substantial investments in the EV industry, allocating $30 billion in the last two years alone for EV battery and vehicle manufacturing facilities for companies like Stellantis, Volkswagen, and Honda. This effort is largely aimed at safeguarding North America’s auto industry from China.