Tariffs will be on the table, Finance Minister Chrystia Freeland announced, along with changes to the incentive programs for zero-emissions vehicles and new rules to protect the data that cars collect. China overproduces electric vehicles due to lower labour and environmental standards, and “action is necessary to level the playing field for Canadian auto workers,” the announcement said. (The Logic)
Talking point: Canada’s action is more preventative than disruptive: Tesla has produced millions of EVs at its Shanghai “gigafactory” but Canada is not a huge destination for other Chinese-made electric vehicles, most of which aren’t household names here. China’s BYD rivals Tesla’s manufacturing globally but the taxi and bus markets are its only toeholds in North America. The U.S. and EU are upping their tariffs on Chinese EVs (albeit with China-EU talks on the issue to come) and the government is concerned that surplus vehicles could flood into Canada as a result.