The Canadian government announced additional 100 percent tariffs on electric vehicles manufactured in China, a move similar to that adopted by the United States to curb the influx of cars from the Asian giant into North America.
"China does not play by the same rules as other countries," said Prime Minister Justin Trudeau, accusing China of "unfair competition."
The 100 percent tariffs are in addition to the existing 6.1 percent tax on this sector.
In Mexico, starting October 1, 2024, the tariff benefit for electric vehicles imported from China will expire, as the Asian country does not have a trade agreement with Mexico, and they will lose the 15 to 20 percent tariff exemption that has been in place since September 2020.
"This decree has benefited Chinese automotive companies in importing electric vehicles to market in the country. Undoubtedly, it will impact the profit margins of the plant-distributor chain for these vehicles and, in part, also the consumer," said Guillermo Rosales, Executive President of the Mexican Association of Automotive Dealers (AMDA).
The representative of the dealers indicated that while it is necessary to establish fiscal support mechanisms for the acquisition of electric vehicles, this should also aim to promote the supply chain and assembly in Mexico.
"The policy we propose is to apply a zero-rate Value Added Tax on the purchase of electric vehicles. This measure would benefit all electric vehicle buyers, regardless of the product's origin, and would provide an incentive to produce here, as well as a benefit to vehicles from countries with which we have trade agreements," he emphasized.