Tesla asks Canada for lower tariffs on its China-made electric cars

Tesla is asking for some relief from Canada’s newly announced tariffs on electric vehicles made in China.

Some Canadian Tesla buyers thought that the newly introduced tariffs on electric vehicles imported from China would force Tesla to supply the market with American-made Tesla vehicles now, but apparently not.

Earlier this week, we reported that Canada is introducing a massive new 100% tariff on new electric vehicles made in China and imported into the country starting in October.

The country is following the US and Europe – although the latter didn’t go as high as 100%. They have varying rates up to 36%.

Tesla requested lower rates in Europe and it was granted a 9% tariff.

Now, Reuters reports that Tesla asked to reduce the tariffs on its Chinese-made vehicles in Canada:

The source, who requested anonymity given the sensitivity of the situation, said Tesla approached Canada before the official announcement. The automaker asked for a rate similar to what it received in the European Union, the source said.

Canada is basing the tariffs on “subsidies, industrial over-capacity, non-market policies as well as environmental and labor standards”.

Tesla produces vehicles in the US, Germany, and China.

Originally, Tesla was supplying Canada with US-made EVs, but after profitability improved at Gigafactory Shanghai, the automaker started to send supply some cars to the Canadian market from China.

Electrek’s Take

This is all a bit weird to me. If the goal is really to protect automotive jobs in Canada, then the tariffs should be the same if the cars are built in China by Tesla, BYD or anyone else.

Tesla has been subsidized in China. It received preferential loans and its EVs received subsidies. As for “environmental and labor standards”, I haven’t seen evidence that Tesla has higher standards in China than competitors.

I feel these tariffs always get political and lose sight of their original goals.