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Published: August 30, 2024
Tesla has filed a request to exempt its models from some of the tariffs recently announced by Canada on electric vehicles manufactured in China.
This comes at a time when there are speculations among consumers in Canada that the new tariffs imposed on electric vehicles imported from China will force Tesla to supply the market with Tesla vehicles made in America now, but it seems that this has not happened according to "Electric."
100%... Canada’s tariffs target Chinese electric cars
Earlier this week, it was revealed that Canada would impose a huge new tariff of 100% on new electric vehicles manufactured in China and imported into the country starting in October.
The country follows in this approach the United States and Europe - although Europe has not reached its tariff level of 100% yet, and has varying rates of tariffs on electric vehicles manufactured in China that go up to 36%.
Tesla had filed a similar request to the European Union, and received a lower tariff rate of 9%.
According to Reuters, Tesla requested a reduction in the tariffs on its vehicles in Canada made in China, according to an informed source who requested anonymity due to the sensitivity of the situation.
The source mentioned that Tesla contacted Canada before the official announcement of the new tariff value, and said that the automaker requested a rate similar to what it received in the European Union.
Canada's imposition of tariffs is based on “subsidies, excess production capacity in the industry, non-market policies, as well as environmental and labor standards.”
Tesla produces vehicles in the United States, Germany, and China.
Canadian Prime Minister Justin Trudeau announced the imposition of a 100% tariff on imports of electric vehicles coming from China.
This decision aligns with American measures aimed at stopping the flow of state-supported Chinese cars into North America.
Trudeau pointed out that China, which is one of the largest exporters of electric vehicles in the world, does not adhere to the environmental and labor rules and standards followed by other countries.
Trudeau also announced an additional 25% tax on imports of steel and aluminum products from China.
The additional tax on electric vehicles is set to take effect on October 1st, and will also include some hybrid passenger cars, trucks, buses, and delivery vans.
The Canadian government announced in a press release that the current tariff of 6.1% on Chinese electric vehicles will remain in effect.
The tariffs on aluminum and steel will start to take effect from October 15, 2024, and the government has published a preliminary list of goods, and the public will have the opportunity to express their opinions before the final list is adopted on October 1, 2024.
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