Tesla asking Canada for lower tariffs on Giga Shanghai-made vehicles: report

2024.08.29 2 min read

Tesla reportedly approached the Canadian government to request for lower tariffs for its vehicles that are being imported from Giga Shanghai, its China-based factory. Canada recently announced that it was imposing a 100% duty on China-made electric cars.

Citing information from a Canadian government source, Reuters claimed that Tesla had asked Canada to give its vehicles a rate similar to what it was able to secure from the European Union. Interestingly enough, Tesla reportedly approached the Canadian government about the matter even before Canada announced its 100% duty for China-made EVs.

Canada’s 100% tariffs are expected to be effective October 1, 2024. They are also expected to apply to all electric vehicles that are shipped from China. These include vehicles that are imported from Tesla’s Giga Shanghai facility in China, such as the Model 3 sedan and Model Y crossover.

Tesla has not issued a comment about the matter as of writing. Canada’s Finance Minister, Chrystia Freeland, reportedly denied to address any talks with Tesla as well.

Tesla’s efforts to secure lower tariffs in Canada are understandable, considering the results of the company’s initiatives in Europe. Back in early July, the European Commission imposed provisional tariffs on electric vehicle (EV) imports from China. Based on the Commission’s initial rates, Tesla received 20.8% duties, higher than other Chinese automakers like BYD, which received 17.4%, and Geely, which received 19.9%.

Tesla responded by requesting a recalculation of its vehicles’ additional import tariffs based on specific subsidies it received in China. Findings from the European Commission confirmed that Tesla has indeed received fewer subsidies from the Chinese government compared to other automakers in the country. As a result, Tesla’s tariffs in Europe were adjusted to just 9%.

Tesla imports a significant number of cars from Giga Shanghai to Canada. As per Reuters, imports of cars from China to Canada’s largest port in Vancouver jumped 460% year-over-year to 44,356 in 2023. Coincidentally, this was when Tesla started shipping Giga Shanghai-made vehicles to Canada.

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