The move comes weeks after both the United States and European Commission moved to impose their own new import tariffs on Chinese EVs, citing unfair subsidies aimed at displacing more expensive vehicles made in Europe and North America.
Since October 2020, companies have promised investments of $46 billion in 13 different EV plants, battery factories and battery precursor production sites. Canada and the provinces are offering up to $53 billion to those projects, including through tax credits, production subsidies and capital investments.
Canada's tariff investigation is being launched under section 53 of the Customs Tariff Act, which allows for imposition of a surtax on imported goods in response to practices that adversely affect Canada's industry. The consultation will consider not only economic harm to Canada, but also national security risks, and environmental, labour and human rights standards.Aside from a surtax on imports, the consultation will weigh additional investment restrictions and whether Canada should make changes to which vehicles are eligible for the federal EV rebate.Right now the only Chinese-made EVs imported into Canada are from the U.S. tech giant Tesla, made at the company's Shanghai factory.
David Adams, president of Global Automakers of Canada, said in a statement Monday he also backed the move."It’s important that the government of Canada provides a level playing field for the sector and we look forward to participating in the consultation process."
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