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Home»Automobile»Canada escalates Chinese trade war, and Tesla is a casualty
Automobile

Canada escalates Chinese trade war, and Tesla is a casualty

Scott CollieBy Scott CollieAugust 26, 2024No Comments4 Mins Read
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Canada Escalates Chinese Trade War, And Tesla Is A Casualty
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Canada has followed the US in slapping Chinese electric vehicles (EVs) with 100 per cent import tariffs, in a bid to guard North American manufacturing.

All electric cars imported from China will likely be hit by the brand new tariffs from October 1, 2024 – including those from US EV pioneer Tesla, which last yr began delivering cars to Canada from Shanghai.

In accordance with Reuters, greater than 44,000 cars were exported from China to Vancouver in 2023 – a 460 per cent year-on-year jump, driven by Tesla imports.

Canada’s recent tariffs are in line with those of its closest neighbour and largest trading partner, the US.

100s of recent automobile deals can be found through CarExpert at once. Get the experts in your side and rating a terrific deal. Browse now.

US President Joe Biden in May announced the nation would increase its tariff on some Chinese imports, including EVs, to 100 per cent. It also increased the tariffs on lithium-ion EV batteries from 7.5 per cent to 25 per cent.

In comments since echoed by Canadian Prime Minister Justin Trudeau, Mr Biden said “American staff can out-work and out-compete anyone so long as the competition is fair, but for too long it hasn’t been fair”.

“For years, the Chinese government has poured state money into Chinese corporations across an entire range of industries: steel and aluminum, semiconductors, electric vehicles, solar panels — the industries of the longer term — and even critical health equipment, like gloves and masks.

“We’re not going to let China flood our market, making it unattainable for American automakers to compete fairly.”

  • Canada escalates Chinese trade war, and Tesla is a casualty

Because it stands, the Polestar 2 is the one China-made electric automobile sold within the USA. It’ll be followed by the Lotus Eletre, which is in-built Wuhan by parent company Geely.

Tesla builds cars within the US for US buyers, while Polestar will construct the three SUV alongside the Volvo EX90 SUV in South Carolina.

As for Canada? Multimatic, the racing specialist which built the most recent Ford GT road automobile, is headquartered in Ontario.

Ford, Stellantis, and General Motors each have three manufacturing plants in Canada, while Honda and Toyota each have one plant.

  • Canada escalates Chinese trade war, and Tesla is a casualty

Chinese brands haven’t ruled out taking over the US market, despite the punitive tariffs.

BYD has expressed interest in opening a producing facility in Mexico, which might allow it to money in on a trade alliance with the USA and Canada.

The USA and Canada aren’t alone in fighting an influx of low-cost Chinese electric cars; Europe is currently grappling with the identical problem.

In June, the European Commission announced it will impose tariffs starting from 17.4 per cent to a 38.1 per cent – on top of its existing 10 per cent tax on all imported vehicles – on EVs coming from China.

  • Canada escalates Chinese trade war, and Tesla is a casualty

Tesla builds the European-delivered Model 3 in China, and was initially slugged with a 20.8 per cent tariff – though the identical impost doesn’t apply to the Model Y (made in Germany), nor the Model S and X (made in America).

Following investigations by the European Union, Tesla has had its tariff reduced to 9.0 per cent – though this doesn’t include the prevailing 10 per cent import tax.

In accordance with Reuters, Tesla’s tariff was reduced after the European Commission discovered the US brand had received fewer subsidies from the Chinese government than other EV makers based within the country.

Tesla wasn’t the one EV maker to have its tariff rate reduced, though it was by far probably the most significant beneficiary. BYD was initially hit with a 17.4 per cent tax rate, since reduced to 17.0 per cent.

  • Canada escalates Chinese trade war, and Tesla is a casualty


This Article First Appeared At www.carexpert.com.au

Canada casualty Chinese escalates Tesla trade war
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