- Canada is considering scrapping its 100 percent tariffs on imported Chinese EVs.
- One survey found 62 percent of Canadians were in favor of removing the tariffs.
- Farmers hope axing the EV duty would remove Chinese tariffs on exported Canola.
Chinese cars are making huge gains in Asia, Europe and South America, but brutal 100 percent tariffs have so far kept them locked out of North America. There’s a chance, though, that this won’t last much longer as Canadian lawmakers are considering scrapping the steep tariffs – and the country’s drivers think they should.
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In a recent pole conducted by Canada’s CTV News, almost two thirds of respondents said they either supported or somewhat supported removing the 100 percent duty on Chinese-made EVs. A total 29 percent supported the removal of tariffs and 33 percent somewhat supported the move. Nine percent of those asked weren’t sure, while 27 percent either opposed or somewhat opposed ditching the duty altogether.
Related: Canada Freezes EV Mandate And GM Boss Can’t Stop Smiling
Canada’s government imposed the tariffs 11 months ago claiming the measure would shield local automakers from unfair Chinese competition. An EU study that led to similar, but less harsh, tariffs in the Old Continent found Chinese automakers received various forms of financial help from their country’s government.
Sliding EV Sales
Now, however, Canadian lawmakers have admitted that the tariffs are up for review. One of the reasons is that EV sales have cratered in the country, with figures released this week showing registrations of fully electric cars north of the US border are down a massive 39.2 percent, in part due to the lower availability of incentives.
Canada recently scrapped its mandate that 20 percent of all new vehicles be zero emissions by 2026 having realized the target was unworkable. Giving drivers access to more EVs, and ones with attractively low prices at that, could potentially boost electric car takeup – or so the thinking goes.
CTV Survey: Do You Support Removing 100 Percent Tariff on Chinese EVs?
SWIPE
Source: CTV News
Pressure From the Fields
There’s another force pushing for the removal of tariffs, though, and it’s nothing to do with cars or meeting lower emissions targets: it’s farmers. The agricultural industry hopes that by Canada agreeing to scrap 100 percent tariffs on EVs, or at least lower the rate, might make China willing to remove its own 75.8 percent tariffs on Canadian crops such as Canola.
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Canada’s PM Mark Carney last week pledged $370 million CAD ($267m US) in support for the Canola market to help it weather the tariffs. The Canola industry supports 206,000 Canadian jobs and contributes $43.7 billion CAD ($31.6 bn US) to the country’s economy, according to Canola Digest, so the local government obviously pays great attention to it.
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