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Justin Trudeau’s government is preparing new duties on Chinese-made electric vehicles, Bloomberg writes, citing its sources. The country may tighten its policy on importing “Chinese” goods, following the example of the United States, with which it is closely linked by trade chains, and the European Union. Auto industry players are also asking to take action, but the government fears a response from China.

According to Statistics Canada, local $2.2 billion worth of Chinese electric cars were imported into the country last year. The growth is colossal: in 2022, their value was only 100 million. The number of cars has grown more than fivefold, which was greatly influenced by the start of deliveries of the Tesla Model Y from Shanghai.

Canadian politicians blame China for its low labor standards and use of dirty energy, allowing it to produce many cheap cars. They, as well as representatives of the auto industry, are calling on Trudeau to bring Canadian tariffs into line with American ones so as not to risk jobs.

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However, some fear retaliation from China, which has already launched investigations into European goods. The Chinese, who produce affordable electric cars for the majority, are also supported by some environmental activists.

In May, the United States announced a plan to increase import duties on Chinese-made electric vehicles nearly fourfold to 100 percent. Last week the EU said it would increase them to a maximum of 38.1 percent.

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