Canada has announced a 100% tariff on imports of China-made electric vehicles (EVs), following similar measures by the United States and the European Union. In addition to the EV tariffs, Canada plans to implement a 25% duty on Chinese steel and aluminum imports starting in October.

The Canadian government, along with its Western allies, accuses China of unfairly subsidizing its EV industry, giving Chinese car manufacturers an advantage in the global market. Prime Minister Justin Trudeau stated, “We are transforming Canada’s automotive sector to be a global leader in building the vehicles of tomorrow, but actors like China have chosen to give themselves an unfair advantage.”

China has condemned the tariffs, labeling them as “trade protectionism” and claiming they violate World Trade Organization rules. A spokesperson from China’s Commerce Ministry urged Canada to reverse its decision, arguing that these actions undermine global economic systems and trade regulations.

The new tariffs will affect Chinese EVs, including those produced by Tesla’s Shanghai factory. Mark Rainford, a China-based car industry expert, noted that Tesla would likely lobby the Canadian government for exemptions and, if unsuccessful, might redirect imports to the U.S. or European factories.

Canada’s decision comes as the country seeks to solidify its position in the global EV industry, having already secured multi-billion-dollar deals with major European car manufacturers. Meanwhile, China remains the world’s largest EV producer and has rapidly expanded its presence in the global market despite these new trade barriers.