The parliamentary budget officer estimates Canada’s tariffs on Chinese electric vehicles, aluminum and steel will increase federal revenues by $473 million over five years.
In October, the federal government began imposing a 100 per cent tariff on Chinese-made EVs and a 25 per cent tariff on steel and aluminum imports.
The Liberal government has cited unfair trading practices and “abysmal” environmental and labour standards that allow China to unfairly price and dump products into the market at a huge cost to the environment and workers.
Canada was under immense pressure to match the U.S. tariffs, pushed by industry groups such as automakers and steel and aluminum plants.
The PBO estimates the tariffs will result in a 50 per cent reduction in aluminum and steel imports from China.
EV imports from China skyrocketed in 2023 because Tesla started shipping Canadian orders from its plant in Shanghai, but the PBO says Tesla will likely now sell vehicles to Canada that were produced outside of China.