Canada to impose 100% tariffs on Chinese EVs, mulls other duties

HOUSTON (ICIS)–Canada plans to impose a 100% tariff on all electric vehicles (EVs) made in China, effective on 1 October, and on top of the 6.1% tariff it already imposes on such automobiles, the government said on Monday.

The tariff includes electric and certain hybrid passenger automobiles, trucks, buses and delivery vans, the government said.

In addition, the government plans to impose a 25% tariff on imports of steel and aluminum products from China, effective on 15 October.

The tariffs will not apply to Chinese goods in transit on the day that the duties come into force.

Canada could impose more tariffs against other Chinese imports following a 30-day review, it said. Those imports could include batteries and battery parts, semiconductors, solar products and critical minerals.

For other countries, Canada plans to limit which ones are eligible to participate in its Incentives for Zero-Emission Vehicles (iZEV), Incentives for Medium and Heavy Duty Zero Emission Vehicles (iMHZEV) and Zero Emission Vehicle Infrastructure Program (ZEVIP).

Eligibility would be limited to products made in countries with which Canada has negotiated free trade agreements.

CANADA’S EV DUTIES FOLLOW THOSE BY US AND EU
EVs made in China have become the target of punitive duties by a growing number of regulators.

Earlier in the month, the European Commission announced plans to impose up to 36% countervailing duties on EVs from China.

US tariffs on Chinese EVs were scheduled to reach 100% on 1 August.

EVs typically consume more plastics on a per unit basis than automobiles powered by internal combustion engines (ICEs). EVs also pose different material challenges, which is increasing demand for different plastics and compounds.

Policies that prolong the use of ICE-based vehicles could extend the operating life of the nation’s refineries. Companies could be more willing to invest in maintenance and repairs if they are confident that they could recoup their investments.

Refineries produce many building block chemicals, such as propylene, benzene, toluene and mixed xylenes (MX).

Thumbnail shows an EV charging station. Image by Xinhua/Shutterstock