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Canada and China Enter Trade Dispute Over EV Tariffs

Canada considers banning Chinese auto software as China investigates 'discriminatory' tariffs on EVs, steel, and aluminum.

  • Deputy Prime Minister Chrystia Freeland announced that Canada is considering a ban on Chinese-made software in vehicles.
  • Canada has imposed a 100% tariff on Chinese electric vehicles and 25% tariffs on Chinese steel and aluminum.
  • China has launched an investigation into Canada's tariffs, labeling them as 'discriminatory' and has filed a complaint with the World Trade Organization.
  • The investigation by China's Ministry of Commerce will examine the tariffs and exclusion of Chinese products from Canadian government incentives and subsidies.
  • The trade tensions come as both Canada and the United States invest heavily in domestic EV manufacturing to compete with China's established market.
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