In light of growing geopolitical rivalries and concerns over security threats, Canadian automakers are urging the government to implement a ban on Chinese automotive software and hardware. Inspired by a similar move in the U.S., the proposed ban aims to prevent potentially harmful Chinese automotive components from entering the Canadian market.
The push for the ban comes alongside a 100% tariff on Chinese-made electric vehicles (EVs) shipped to Canada, set to take effect on October 1, 2024. This tariff will predominantly impact Western-headquartered automakers like Polestar and Tesla, the primary importers of China-assembled EVs to Canada.
Key industry players, including General Motors, Ford, and Stellantis, have voiced their support for the ban through the Canadian Vehicle Manufacturers’ Association. Deputy Prime Minister Chrystia Freeland expressed the government’s concern over Chinese overcapacity and security risks posed by Chinese-made auto components.
This Canadian initiative follows a similar stance in the United States, where a 100% tariff on Chinese EVs has already been implemented, with the Biden administration considering a ban on Chinese automotive software and hardware due to fears of surveillance and control over U.S. vehicles. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, emphasized the need for Canada to align with U.S. policies, arguing that any divergence could give China an unfair advantage.
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