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.