Tesla has appealed to the Canadian government for a reduction in tariffs on its electric vehicles produced at Giga Shanghai following Canada’s decision to impose a 100% duty on Chinese-made vehicles.
Tesla Seeks Reduced Tariff in Canada
A Canadian government source claimed on Wednesday that Tesla approached Ottawa and requested a reduced tariff on its autos before Canada announced this week that it would impose a 100% charge on electric vehicles built in China.
On Monday, Canada followed the US in announcing that it would impose a tariff on any Chinese-made vehicles sold within the nation. The reasoning behind this move is what Canada sees as China's deliberate and state-directed strategy of over-capacity.
All electric vehicles exported from China, including Teslas, will be subject to the taxes as of October 1st. Duty imposition had been hinted at by Ottawa in June.
Tesla Approached Ottawa Before Public Announcement
According to the source, who wished to remain anonymous due to the delicate nature of the matter, Tesla had already approached Canada before the public announcement. The carmaker reportedly requested a charge comparable to its European Union rates, Reuters shares.
When it comes to Chinese shipments to Canada, Tesla stays mum. However, VIN data revealed that Model 3 compact sedans and Model Y crossovers were leaving Shanghai for Canada.
EU Imposes 9% Tariff on Tesla’s China-Made Cars
This month, the European Union (EU) eased its stance on Tesla by imposing a lower tax of 9% on Chinese-made automobiles, as compared to the 36.3% rate it applied to other electric vehicle imports from China.
While the EU only evaluated direct subsidy costs when determining its tariff for Tesla, the United States and Canada looked at subsidies, industrial over-capacity, non-market regulations as well as environmental and labor norms, the source added.
Tesla Stays Silent After Canada's Tariff Move
The insider claimed that since Monday, Tesla has not communicated with Ottawa. The office of Chrystia Freeland, Canada's finance minister and the person generally in charge of tariffs, chose not to comment on the discussions with Tesla.
There was no quick response from Tesla about this matter.
Canada's Vehicle Imports from China Soar in 2023
Per Yahoo Finance, the number of vehicles imported to Canada from China to its busiest port, Vancouver, increased by 460% annually to 44,356 in 2023, the year that Tesla began delivering electric vehicles manufactured in Shanghai to Canada.
President Joe Biden of the United States said in May that tariffs on certain Chinese imports would be quadrupled to 100%, semiconductors, and solar cells would have their charges doubled to 50%, and lithium-ion batteries and other vital commodities would be subject to new 25% tariffs. In a letter sent to the US Environmental Protection Agency in July 2023, Tesla stated that it had never imported models manufactured in China into the US market.
The United States will not impose tariffs until September, and this week there is a chance that they will be loosened.
Volvo and Polestar Study Impact of Canadian Tariffs
Volvo Cars said it was investigating the potential consequences of Canada's new tariff increases. The Swedish automaker did not reveal how many EX30, XC60, and S90s automobiles it shipped to Canada from China.
Polestar 2, an electric vehicle manufactured in Sweden and co-owned by Volvo Cars and Geely of China, is being sent to Canada from China. The effects of the Canadian tariff are being studied, the corporation stated.


FCC Approves $3.54B Nexstar-Tegna Merger, Waiving Broadcast Ownership Cap
Zhipu AI Launches GLM-5-Turbo Model to Power Next-Gen AI Agent Workflows
Volkswagen CEO Urges Germany to Adopt China's Industrial Discipline Amid Major Restructuring
Nvidia's Jensen Huang Credits Samsung for Manufacturing New AI Chips, Boosting Stock
Microsoft Eyes Legal Action as Amazon-OpenAI Deal Threatens Azure Exclusivity
SK Hynix Chairman Warns of Memory Chip Shortage Through 2030 Amid AI Boom
NVIDIA Resumes China AI Chip Production Amid $1 Trillion Revenue Forecast
FEMSA Cuts Jobs at Spin Fintech Unit, Refocuses Strategy on Oxxo Stores
Nvidia's Jensen Huang Forecasts $1 Trillion in AI Chip Demand Through 2027
Elliott Investment Management Takes Activist Stake in Align Technology
Xiaomi Shares Drop After SU7 Launch as Margin Concerns Weigh on Investors
United Airlines Cuts Flights 5% Amid Soaring Fuel Costs From Iran War
Micron Technology Beats Q2 Earnings Estimates, Issues Strong AI-Driven Outlook
EA's $15B Debt Offering Draws $25B in Investor Demand Amid Credit Market Turmoil
Goldman Sachs Delays Bank of England Rate Cut Forecast Amid Middle East Inflation Risks
J.P. Morgan Now Expects Two ECB Rate Hikes Amid Inflation Pressures
Meta Eyes Massive Layoffs to Fund AI Ambitions 



