The United States and the European Union have imposed tariffs of 100 percent and 38 percent, respectively, on Chinese electric vehicles in recent months.
Canada's automotive industry employs over 125,000 people and Ottawa has invested billions of dollars to support the transition to electric vehicles and bolster the country's supply of electric batteries.
At a press conference in Halifax on Canada's Atlantic coast, Trudeau said China's overproduction of electric vehicles and high government subsidies for the country's auto industry “force us to act.”
“If we don't want to get caught in a race to the bottom, we have to stand up, and that's what we're doing,” he said. In a statement, the administration described the tariffs as a response to “this extraordinary threat.”
The electric vehicle surcharge will be levied on Chinese electric and certain hybrid cars, trucks, buses and vans from October 1, in addition to the existing import tariffs of 6.1 percent.
In addition, Ottawa will limit eligibility for electric vehicle incentives to those manufactured in countries with which Canada has free trade agreements, excluding China.
The additional tax on imports of steel and aluminum products from China will come into force on October 15.