Canada to start consultation to impose surtax on Chinese electric vehicles

Canada's government is investigating whether to impose a surtax on imports of Chinese-made electric vehicles.

A 30-day consultation on the issue will begin on July 2 to counter what Deputy Prime Minister Chrystia Freeland said Monday is a clear effort by Chinese companies to generate a global oversupply.

Canada's move comes weeks after both the United States and the European Commission announced plans to impose higher import tariffs on Chinese EVs this summer.

Our automotive sector supports nearly 550,000 good paying Canadian jobs, Freeland said. Canadian workers and the auto sector are facing unfair competition from China's intentional state directed policy of overcapacity that is undermining Canada's EV sector ability to compete in domestic and global markets.

The consultation will seek input on what is driving China's surging EV exports, including unfair market practices as well as labor and environmental standards.

In addition to a surtax, the consultation will consider whethe