Canada's 100% EV Tariff Hits Tesla Hard
On August 26, the Canadian government announced that it will impose a 100% tariff on imports of Chinese electric vehicles, in addition to a 25% tariff on imported steel and aluminum. Most importantly, the tariff applies to all EVs shipped from China, which means they will affect Teslas as well. Prime Minister Justin Trudeau said the tariffs would counter what he called China’s policy of over-capacity, per Reuters. “I think we all know that China is not playing by the same rules.”
The tariffs, which go into effect on October 1st, will be problematic for Tesla. Currently, the Model 3 and the Model Y, at a minimum, are shipped from Shanghai. Given the company’s flexibility on its pricing, consumers could expect to see pricing changes as a result of the tariffs. However, there is a potential loophole, with one Reuters analyst pointing out that Tesla can, in theory, move its exports from Shanghai to the US.
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Chase is an automotive journalist with years of experience in the industry. He writes for outlets like Edmunds and AutoGuide, among many others. When not writing, Chase is in front of the camera over at The Overrun, his YouTube channel run alongside his friend and co-host Jobe Teehan. If he's not writing reviews of the latest in cars or producing industry coverage, Chase is at home in the driver's seat of his own (usually German) sports cars.
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