In October 2024, Canada imposed a 100 per cent tariff on all electric vehicle (EV) imports from China, effectively barring consumers from accessing some of the world’s most innovative, affordable models. These tariffs are deepening the country’s dependence on the United States and undermining its climate goals.

Canada’s unusually prohibitive tariff mirrored the strategy of the U.S., which imposed a 100 per cent duty on Chinese EVs in September 2024.

The government justified its “tariff fortress” by pointing to China’s extensive industrial policy, such as subsidies, that artificially lower production costs. The tariffs were claimed to protect domestic producers by offsetting the cost advantage enjoyed by Chinese EV manufacturers.

While this rationale has some basis, it is highly overstated. The European Union’s in-depth investigation into Chinese support for the EV industry revealed company-specific subsidy levels, ranging from 7.8 per cent for Tesla Shanghai to 35.3 per cent for the SAIC Group, which subsequently became the basis for imposing countervailing duties.

Agriculture Minister Heath MacDonald recently said the government is........

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