Canada imposes a 100% tariff on imports of Chinese-made electric vehicles, matching the US

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Canada imposes a 100% tariff on imports of ********-made electric vehicles, matching the US

TORONTO (AP) — Canada announced Monday it is launching a 100% tariff on imports of

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, matching U.S. tariffs imposed over what Western governments say are China’s subsidies that give its industry an unfair advantage.

The announcement came after encouragement by U.S. national security advisor Jake Sullivan during a meeting with ********* Prime Minister Justin Trudeau and Cabinet ministers Sunday. Sullivan is making his first visit to Beijing on Tuesday.

Trudeau said Canada also will impose a 25% tariff on ******** steel and aluminum. “Actors like China have chosen to give themselves an unfair advantage in the global marketplace,” he said.

There was no immediate response from China.

One of the ********-made EVs imported into Canada is from Tesla, made at the company’s Shanghai factory, though the U.S. company could avoid the tariff by switching to supplying Canada from factories in the U.S. or Germany.

******** brands are not yet a player in Canada. However, ******** EV giant BYD established a ********* corporate entity last spring and has indicated it intends to try and enter the ********* market as early as next year.

******** officials are likely to raise concerns about the

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with Sullivan as Beijing continues to repair its economy after the COVID-19 pandemic. U.S. President Joe Biden in May

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on ******** electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment.

“The U.S. does believe that a ******* front, a coordinated approach on these issues benefits all of us,” Sullivan told reporters on Sunday.

Biden has said ******** government subsidies for EVs and other consumer goods ensure that ******** companies don’t have to turn a profit, giving them an unfair advantage in global trade.

******** firms can

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. China’s solar cell plants and steel and aluminum mills have enough capacity to meet much of the world’s demand. ******** officials argue their production keeps prices low and would aid a transition to the green economy.

“We’re doing it in alignment, in parallel, with other economies around the world that recognize that this is a challenge that we are all facing,” Trudeau said of the new tariffs. “Unless we all want to get to a race to the bottom, we have to stand up.”

Deputy Prime Minister Chrystia Freeland said Canada also will launch a 30-day consultation about possible tariffs on ******** batteries, battery parts, semiconductors, critical minerals, metals and solar panels.

“China has an intentional state-directed policy of overcapacity and oversupply designed to cripple our own industry,” Freeland said. “We simply will not allow that to happen to our EV sector, which has shown such promise.”

The only ********-made EVs currently imported into Canada are from Tesla, made at the company’s Shanghai factory.

Canada “had to go with the U.S. position, when you think about the economic integration that we have with the U.S. More than 75% of our exports go to the U.S.,” said a former ********* ambassador to China, Guy Saint-Jacques.

Saint-Jacques said Canada can expect retaliation from China in other industries, adding that barley and pork are candidates because the ******** can get it from other countries.

“China will want to send a message,” he said.

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This story has been corrected to say Tesla is one of the ********-made EVs imported into Canada, not the only one.

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