Canada to Raise Tariffs on Chinese Electric Vehicles and Steel, Says PM Justin Trudeau
Ottawa [Canada], August 26: Canadian Prime Minister Justin Trudeau has announced that Canada will introduce higher tariffs on Chinese-made electric vehicles (EV) and Chinese steel. Speaking to reporters in Halifax, Trudeau stated, “Shortly, we will be introducing a 100 per cent tariff on Chinese-made electric vehicles and a 25 per cent tariff on Chinese steel and aluminum.”
Trudeau explained that the decision was made to encourage electric vehicle manufacturing in Canada. This move aligns Canada with recent US trade policy changes. In May, US President Joe Biden announced an increase in tariffs on Chinese EVs from 25 per cent to 100 per cent.
In June, Canada’s Finance Minister Chrystia Freeland expressed concerns over “unfair” Chinese trade practices in the EV sector and announced a consultation process for potential response measures. Currently, the only Chinese-made EVs imported into Canada are Teslas manufactured in Shanghai.
Freeland mentioned that potential policy actions could include a surtax on imports of Chinese EVs and changes to federal incentives for the Zero Emissions Vehicle Program. The new tariffs aim to boost domestic EV manufacturing and ensure fair competition.
Doubts Revealed
Tariffs -: Tariffs are extra charges or taxes that a country puts on goods coming from another country. This makes those goods more expensive.
Electric Vehicles (EVs) -: Electric Vehicles, or EVs, are cars that run on electricity instead of petrol or diesel. They are better for the environment because they don’t produce pollution.
Steel -: Steel is a strong metal made from iron. It is used to build many things like cars, buildings, and bridges.
Prime Minister -: The Prime Minister is the leader of a country’s government. In Canada, the Prime Minister is Justin Trudeau.
Halifax -: Halifax is a city in Canada. It is located in the province of Nova Scotia.
US trade policy -: US trade policy refers to the rules and regulations that the United States follows when trading goods with other countries.
Finance Minister -: The Finance Minister is a government official responsible for managing a country’s money and economic policies. In Canada, this is Chrystia Freeland.
Domestic EV manufacturing -: Domestic EV manufacturing means making electric vehicles within the country, in this case, Canada, instead of importing them from other countries.