Canada puts 100% tariff on China-made EVs, including Teslas

STORY: Chinese-made electric vehicles face a new set of tariffs, this time from Canada.

The country said Monday it would impose a 100% duty on imports of the cars.

That follows similar moves by the U.S. and EU.

The levies make no exception for Tesla vehicles manufactured in China.

That’s in contrast with Europe, which gave Elon Musk’s firm a lower rate in return for cooperating with its probe into Chinese exports.

Tesla shares fell over 3% following the news.

Canadian Prime Minister Justin Trudeau said Ottawa was acting to counter what he called Beijing’s intentional over-capacity.

"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 in the global marketplace, compromising the security of our critical industries, and displacing dedicated Canadian autos and metal workers."

Responding to the news, China’s embassy in Canada called the move “protectionist”, and said Ottawa was ignoring World Trade Organisation rules.

The new tariffs also include a 25% duty on Chinese metals including steel.

And Trudeau said punitive measures on chips and solar cells could follow.

U.S. President Joe Biden in May quadrupled tariffs on Chinese EVs to 100%.

The EU has imposed duties going up to just over 36%.