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In a shortsighted move, Canada imposes 100% tariff on electric cars

26.Aug.2024

Today Justin Trudeau proudly announced¹ a 100% tariff on Chinese electric cars. The government is claiming that it “has long been concerned about the prospect of Chinese automakers flooding North America with heavily subsidized cars that are made in a country with poor labour and environmental standards.” And, of course, Deputy PM Freeland says they will “protect the government’s substantial investment in domestic electric vehicle manufacturing.”

Aside from the blatant hypocrisy of claiming to be greatly concerned about the environment, this shortsighted tariff will have the opposite long term effect on Canadian workers: Chinese manufacturers will be driven to even greater efficiency since every dollar saved in their cost of goods sold will result in a two-dollar saving when exported to Canada.

Although a newly-elected Trudeau claimed in Paris² in 2015 that Canada would be a leader in the fight against climate change, in fact the country under a continuous Liberal government since, has the worst or second worst record in the G18. As one of the richest countries in the world, Canada should be doing much, much better.

This tariff will encourage Canadian automakers to retain high prices and thus further impede their adoption by the country’s consumers, further cementing a dismal record of action on reducing CO₂ emissions.