Canada to Shield Auto Industry from Cheap Chinese Electric Vehicles

Canada announced the start of 30-day consultations beginning July 2, 2024, to consider possible measures to protect Canadian automotive workers and the electric vehicle industry from unfair trading practices. The move was prompted by China's intentional policy of overproduction and lack of stringent labor and environmental standards, which have led to a global oversupply that threatens Canadian manufacturers and their profitability.

During the consultations, various measures will be explored, including additional tariffs, adjustments to incentive programs for zero-emission vehicles, investment restrictions, and measures related to cybersecurity and data protection. These actions are necessary to ensure a level playing field in both domestic and global markets and to safeguard against unfair competition.

Implementing these measures will also help avoid a potential surge in Chinese imports due to increased trade protection on Chinese electric vehicles, limiting their impact on the market, including the markets of the United States and the European Union.