China Launches Anti-Discrimination Probe After Canada Raises Tariffs

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China’s Ministry of Commerce

China’s Ministry of Commerce announced Thursday that it would launch an anti-discrimination investigation into Canada’s trade measures against China.

The investigation follows the introduction of tariffs and other restrictions by Canada on Chinese electric vehicles (EVs), steel, aluminum, batteries, chips and solar products. The probe, according to China’s Foreign Trade Law, seeks to address perceived discriminatory actions by Canada, marking the latest escalation in trade tensions between the two nations.

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China’s Ministry of Commerce announced an anti-discrimination investigation into Canada's trade measures, particularly regarding tariffs on Chinese imports like EVs, steel, and aluminum.
Canada implemented new tariffs: 100% on Chinese EVs starting Oct. 1 and 25% on steel and aluminum from Oct. 15; considering a surtax on additional products.
Rising tensions reflect a similar pattern between China and the US, with the US also planning significant tariff increases on Chinese EVs by the end of September.

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Who’s Who

Tesla: Tesla is a major exporter of new energy vehicles (NEVs) from China to Canada. In the first half of 2024, China exported over 13,200 NEVs to Canada, with Tesla significantly contributing to this volume. The upcoming Canadian tariffs, increasing the tax rate on Chinese-made EVs to 106.1%, are expected to heavily impact Tesla's exports.

Geely Automobile Holdings Ltd.: Geely Automobile Holdings Ltd. is a Chinese automotive manufacturer that partly owns Polestar, a Swedish electric vehicle (EV) maker. Geely is involved in exporting new energy vehicles (NEVs) to Canada, contributing to the significant growth in Chinese EV imports to the country.

Polestar: Polestar is a Swedish electric vehicle (EV) maker partly owned by Geely Automobile Holdings Ltd. It is one of the major EV exporters to Canada. The current tariffs set by Canada are expected to significantly impact Polestar's exports, increasing the tax rate on Chinese-made EVs from 6.1% to 106.1%.

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What Happened When

May 2024：: The U.S. government announced plans to increase tariffs on Chinese electric vehicles and related technologies.

By the end of September 2024：: The U.S. tariffs on Chinese electric vehicles and related technologies are set to come into force, raising the EV tariff rate to 100%.

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