Finance Minister Chrystia Freeland said Canada is investigating whether to impose an additional tax on electric vehicles made in China.

Consultations lasting 30 days on this issue are set to begin on July 2nd to address what Freeland describes as a clear effort by Chinese companies to generate a surplus in global supply.

This move by Canada follows weeks after both the United States and the European Commission announced plans to impose higher tariffs on imports of Chinese electric vehicles this summer.

The consultation will seek input on the reasons behind the increasing exports of electric vehicles from China, including unfair market practices as well as labor and environmental standards.

In addition to the additional tax, the consultation will consider whether Canada should change the criteria for vehicles eligible for the federal electric vehicle purchase rebate of up to $5,000 per vehicle.

It will also consider whether investment restrictions in Canada should be expanded.