OTTAWA – The Biden administration is quadrupling US tariffs on electric vehicles manufactured in China. But Chinese-made cars are still finding their way into a receptive North American market — just to the north.
The situation is drawing howls of protest from some auto-industry players who want Canadian Prime Minister Justin Trudeau to follow the White House and do more to protect the domestic industry.
Canada imposes only a small tariff on Chinese-made vehicles — about 6%. It also allows consumers to tap a federal rebate program when they buy foreign-manufactured EVs. Since Tesla started exporting from its Shanghai factory last year, many purchasers have begun using that incentive.
“Here you can buy a Tesla made in Shanghai and get a C$5,000 purchase incentive that is funded by Canadian taxpayers — including the Canadian companies who are competing with Tesla for that vehicle purchase,” Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association, said in an interview.
“We’ve raised this publicly, we’ve raised it privately, everything short of yelling at the moon from the top of a mountain to get somebody to close that door,” he said. “And it’s wide open. It’s noticed in the US.”
Officials with Canada’s transportation department did not reply to requests for comment.
