Prime Minister Justin Trudeau's cabinet is still unclear about how to proceed, people familiar with the considerations told Bloomberg on condition of anonymity. The start of public consultations on import tariffs is likely to be announced soon.
Trudeau is reportedly under pressure both at home and abroad to align Canada with the United States and the European Union after they announced plans to take import duties on Chinese EVs up to, respectively, 102.5% and 48%. Concerns are that Chinese automakers would push domestic competitors out of the Canadian market.
The White House said in May that it would raise tariffs on $18 billion worth of Chinese imports, including electric cars, solar panels and steel, to allegedly protect domestic businesses from Beijing's "unfair trade practices." In early June, the European Commission made a provisional decision to impose extra duties on imports of Chinese electric vehicles, starting July, due to allegedly unfair state subsidies. Beijing vowed to do what it takes to protect its interests.
The Chinese Commerce Ministry said last week that the EU's tariff hike undermined global supply chains in the car industry. It warned that the action would hurt trade cooperation between Beijing and Brussels and damage the interests of European consumers. On the US tariffs, the Chinese Foreign Ministry said that Washington's discriminatory practices violated the rules of the World Trade Organization.