Canada to Cut Tariffs on Chinese Electric Cars
Canada has reached an agreement with China to reduce tariffs on Chinese electric cars in exchange for lower tariffs on Canadian agricultural products, including canola. The decision was announced during Canadian Prime Minister Mark Carney's visit to Beijing.
What is Known
Currently, Canada imposes a 100% tariff on Chinese electric cars. These will be reduced to 6.1%, but with restrictions.
The deal between Canada and China includes an import quota: in the first phase, up to 49,000 Chinese electric cars can be supplied to Canada annually, with a limit increase to about 70,000 over five years. For context, Canadians purchase about 1.8 million cars annually.
In return, China will reduce the overall tariff on canola seeds, Canada's main export product, from 84% to around 15%.
Carney stated that most of these electric cars would cost less than 35,000 Canadian dollars (about 25,000 US dollars), while the average price of a new car in the country reaches 63,000 Canadian dollars. Authorities see the agreement as a step toward forming a new segment in the automotive industry and expanding the list of available models for buyers.
Canada, following the US, imposed 100% tariffs on electric cars from China and 25% tariffs on steel and aluminum under former Prime Minister Justin Trudeau, Carney's predecessor. In response, China imposed 100% tariffs on Canadian agricultural products, as well as 25% on pork and seafood.
Source: AP
