Unlike the EU, which recently scaled back an otherwise planned punitive tariff, Canada is now imposing 100 percent tariffs on Chinese electric cars.
It will be an uphill battle to get Chinese electric cars sold in Canada, if any cars appear at all. The country has decided to follow the example of the United States with 100 percent duty on electric cars.
According to Canadian Prime Minister Justin Trudeau, the tariff is due to China not playing by 'the same rules'.
The new rules were announced one day after US National Security Adviser Jake Sullivan met with Prime Minister Trudeau. The penalty will come into force on 1 October and will apply to both passenger cars, trucks and buses from China.
CNBC writes that.
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In addition, a punitive tariff of 25 percent will be placed on top of all steel from China that crosses the border into Canada after October 1.
Right now, 120,000 people work in Canada's auto industry, but the country's leaders fear the industry will be outcompeted by the Chinese because the communist regime is flouting rules on illegal government subsidies.
For brands like Volvo and Polestar, which are already present in Canada, the tariff is a heavy blow. For Volvo, it no longer pays to launch the new EX30, because production is moving to the brand's factory in Ghent, Belgium.
And for Polestar, it will be more or less impossible to sell both Polestar 2 and 4 in the country, since these are exclusively built in China. Only the new Polestar 3, which is also built in the USA, can be brought to the country.
The US has also targeted a 100 percent punitive tariff against Chinese electric cars, while the EU has so far a temporary punitive tariff of between 9 and 36.3 percent after certain adjustments. Read more about it here .
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