Canada’s car manufacturing industry employs over 125, 000 people. Ottawa has invested billions of dollars to strengthen its regional energy battery supply line and facilitate its transition to electric vehicles.
Trudeau stated at a press conference in Halifax on the Atlantic coast of Canada that the excessive production of Chinese electric vehicles and the state’s incentives for the automobile industry “require us to take action.”
” Unless we want to get in a competition to the bottom, we have to stand up, and that’s what we’re doing”, he said. In a speech, the state called the levies a reply to” this extraordinary risk”.
The EV surtax, on top of existing trade duties of 6.1 per cent, may become imposed starting Oct 1 on Chinese energy and selected composite passenger automobiles, trucks, buses and delivery vans.
Moreover, Ottawa will restrict EV incentives to those made in nations where Canada has free trade agreements, including China.
It may start a surtax on exports of steel and aluminum products from China on October 15.