Canada will be imposing a 100% tariff on electric vehicles imported from China, as well as a 25% levy on Chinese steel and aluminum. 

Prime Minister Justin Trudeau announced the new tariffs on August 26, according to the Associated Press, after Trudeau met with U.S. national security advisor Jake Sullivan. The U.S. increased its own tariffs on imported Chinese EVs to 100% in May, with the European Union following suit in June with levies of up to 38%. 

Canada, the U.S. and the EU have all accused China of providing unfair subsidies to automakers and green energy manufacturers, and undercutting global markets with a flood of low-priced EVs, solar panels and vehicle batteries. That includes Chinese automaker BYD, which released an EV in 2023 that sells for the equivalent of around $12,000 in China.

“Actors like China have chosen to give themselves an unfair advantage in the global marketplace,” Trudeau said. 

Canada's tariffs will take effect on October 1. In the coming days, Canada's government also plans to launch a 30-day consultation to look into additional tariffs on imported Chinese batteries, semiconductors, precious metals and solar panels.