{"id":76170,"date":"2024-08-26T12:03:47","date_gmt":"2024-08-26T16:03:47","guid":{"rendered":"https:\/\/autosector.com\/?p=76170"},"modified":"2024-08-26T12:03:47","modified_gmt":"2024-08-26T16:03:47","slug":"1144255_canada-100-tariff-extraordinary-threat-of-chinese-evs","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=76170","title":{"rendered":"Canada adds 100% tariff for \u201cextraordinary threat\u201d of Chinese EVs"},"content":{"rendered":"<ul>\n<li><strong>100% tariff on Chinese-made EVs follows U.S.<\/strong><\/li>\n<li><strong>EV incentives only apply to free-trade partners, Canada underscored<\/strong><\/li>\n<li><strong>Mexico remains a potential U.S. entry point for Chinese automakers<\/strong><\/li>\n<\/ul>\n<p dir=\"ltr\">Canada\u2019s national government Monday announced a 100% tariff on the import of Chinese-made electric vehicles.<\/p>\n<p>, and it follows language similar to that being adopted by the EU. Specific tariff items apply widely without exceptions, on everything from passenger vehicles to buses and trucks, and of fuel types ranging from gasoline to electric and hydrogen fuel-cell.\u00a0<\/p>\n<p><span id=\"static-marker-video-player-primis\"\/><\/p>\n<p>Accompanying the vehicle tariff, Canada also announced a <strong>25% tariff on Chinese steel and aluminum<\/strong> set to start October 15, 2024.\u00a0<\/p>\n<p>Additionally, Canada took its actions versus China a step farther than the U.S. has thus far: It\u2019s <strong>limiting eligibility of Chinese EVs for all federal EV incentives<\/strong>\u2014to those that have negotiated free-trade agreements with Canada. With no limitations on final assembly or battery and mineral sourcing requirements for Section 45W, U.S. firms eying commercial use or leasing and purchasing Chinese vehicles subject to the new tariffs would appear to still be eligible to get $7,500 or more back via the <a href=\"https:\/\/www.greencarreports.com\/news\/1144231_us-ev-loophole-subsidizes-imports-has-fueled-leasing-boom\">EV \u201cleasing loophole.\u201d<\/a><\/p>\n<h2 dir=\"ltr\">Canada\u2019s move follows Biden\u2019s 100% tariff hike<\/h2>\n<p>\u201cChina\u2019s intentional, state-directed policy of overcapacity and lack of rigorous labor and environmental standards threaten workers and businesses in the EV industry around the world and undermine Canada\u2019s long term economic prosperity,\u201d said Canada\u2019s Department of Finance in a press release accompanying the announcement. It added that \u201cexceptional measures are required to address this extraordinary threat.\u201d<\/p>\n<p>The Biden administration tariff hike versus China was announced in May, and it was directly positioned <a href=\"https:\/\/www.greencarreports.com\/news\/1143175_biden-hikes-tariffs-to-keep-chinese-evs-out\">to keep Chinese EVs out<\/a>. That U.S. move raises tariffs on EVs from 25% to 100% this year, and it hikes the tariff rate on lithium-ion batteries and battery parts from 7.5% to 25% when applied to EVs. An equivalent hike on tariffs for lithium-ion batteries imported from China for other applications applies starting in 2026.\u00a0<\/p>\n<div class=\"image_wrapper first_wrapper\"><img fetchpriority=\"high\" decoding=\"async\" name=\"tccimg_100909456_m\" title=\"2025 Volvo EX30\" src=\"data:image\/png;base64,R0lGODlhAQABAAD\/ACwAAAAAAQABAAACADs=\" alt=\"2025 Volvo EX30\" width=\"640\" height=\"360\" class=\"first_image lazy\" data-width=\"1024\" data-height=\"576\" data-url=\"https:\/\/images.hgmsites.net\/lrg\/2025-volvo-ex30_100909456_l.webp\" data-src-h=\"https:\/\/images.hgmsites.net\/hug\/2025-volvo-ex30_100909456_h.webp\" data-src=\"https:\/\/images.hgmsites.net\/lrg\/2025-volvo-ex30_100909456_l.webp\" data-src-l=\"https:\/\/images.hgmsites.net\/lrg\/2025-volvo-ex30_100909456_l.webp\" data-src-m=\"https:\/\/images.hgmsites.net\/med\/2025-volvo-ex30_100909456_m.webp\" data-src-s=\"https:\/\/images.hgmsites.net\/sml\/2025-volvo-ex30_100909456_s.webp\"\/><\/p>\n<p>2025 Volvo EX30<\/p>\n<\/div>\n<p>That reportedly led to the <a href=\"https:\/\/www.greencarreports.com\/news\/1143648_volvo-ex30-delayed-until-2025-in-us-due-to-tariffs\">delay of the Volvo EX30<\/a> compact EV, a vehicle that was slated to arrive first as a Chinese import, with Europe-built vehicles arriving later.<\/p>\n<h2 dir=\"ltr\">Mexico in the balance\u2014especially for EVs<\/h2>\n<p>Presidential candidate Donald Trump, who has underscored that Mexico has taken away 34% of automobile manufacturing business in the U.S., has promised to take the <a href=\"https:\/\/www.greencarreports.com\/news\/1142599_trump-tariff-mexico-built-chinese-cars-evs\">100% Chinese tariffs a step further<\/a>\u2014to all vehicle types\u2014with policies to pressure automakers to build vehicles in the U.S. rather than Mexico.\u00a0<\/p>\n<p>Mexico remains part of the evolution of a free-trade framework with the U.S. and Canada. Once called NAFTA, it was revamped only slightly during the Trump administration and renamed the U.S.-Mexico-Canada Agreement (USMCA).\u00a0<\/p>\n<div class=\"image_wrapper\" readability=\"7\"><img decoding=\"async\" name=\"tccimg_100929457_m\" title=\"BYD Dolphin EV - Euro spec\" src=\"data:image\/png;base64,R0lGODlhAQABAAD\/ACwAAAAAAQABAAACADs=\" alt=\"BYD Dolphin EV - Euro spec\" width=\"640\" height=\"383\" data-width=\"1024\" data-height=\"612\" data-url=\"https:\/\/images.hgmsites.net\/lrg\/byd-dolphin-ev--euro-spec_100929457_l.webp\" data-src-h=\"https:\/\/images.hgmsites.net\/hug\/byd-dolphin-ev--euro-spec_100929457_h.webp\" data-src=\"https:\/\/images.hgmsites.net\/lrg\/byd-dolphin-ev--euro-spec_100929457_l.webp\" data-src-l=\"https:\/\/images.hgmsites.net\/lrg\/byd-dolphin-ev--euro-spec_100929457_l.webp\" data-src-m=\"https:\/\/images.hgmsites.net\/med\/byd-dolphin-ev--euro-spec_100929457_m.webp\" data-src-s=\"https:\/\/images.hgmsites.net\/sml\/byd-dolphin-ev--euro-spec_100929457_s.webp\" class=\"lazy\"\/><\/p>\n<p>BYD Dolphin EV &#8211; Euro spec<\/p>\n<\/div>\n<p>But Mexico is also proving to be the weak point in the defense against the onslaught of inexpensive Chinese EVs. Under the USMCA, Chinese EVs made in Mexico, with Mexican materials, could still potentially be sold in the U.S. free of trade tariffs. So far the nation south of us has made <strong>no move to step up its Chinese tariff rules<\/strong>.<\/p>\n<p>Europe remains in pushback mode, but it appears that versus Chinese EVs, its implementation of <strong>EU tariff rules may be too late<\/strong>. <a href=\"https:\/\/www.greencarreports.com\/news\/1141777_byd-seal-photos-range-details-specs\">China\u2019s BYD<\/a> has already begun selling its Dolphin EV, a well-rated compact hatchback, for less than $30,000 in some EU markets, and the lower-priced Seagull might potentially be sold for less than $20,000 in some markets.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>100% tariff on Chinese-made EVs follows U.S. EV incentives only apply to free-trade partners, Canada underscored Mexico remains a potential U.S. entry point for Chinese automakers Canada\u2019s national government Monday announced a 100% tariff on the import of Chinese-made electric vehicles. , and it follows language similar to that being adopted by the EU. Specific [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-76170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/76170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=76170"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/76170\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=76170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=76170"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=76170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}