Tesla asked the Canadian government to lower the tariff on its electric vehicles (EVs) made in China before Canada decided to impose a 100% duty on all Chinese-made EVs, according to a government source. This new tariff, which starts on October 1, follows the U.S.’s lead in responding to China’s state-driven overproduction of vehicles.
Tesla requested a tariff similar to the 9% rate it received in the European Union, which is much lower than what other Chinese EVs face there. However, Canada and the U.S. consider additional factors like industrial over-capacity and labor standards when setting tariffs, which influenced their decision to implement the higher duty.
Tesla had been shipping its Model 3 and Model Y vehicles from Shanghai to Canada, contributing to a 460% increase in Chinese car imports to Vancouver in 2023. Despite this, Tesla hasn’t contacted the Canadian government since the new tariff was announced.
Other automakers, like Volvo and Polestar, which also import vehicles from China to Canada, are now assessing how the new tariff will affect their business.
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