Tariffs on Chinese-made EVs could raise prices ‘specifically, immediately, very acutely’
New 100% tariff on all EVs manufactured in China comes into effect on Oct. 1
As part of its plan to accelerate the electric vehicle transition, the federal government gave Chris McDermott $5,000 in 2022 to sweeten the deal after he picked out a battery-electric, magnesium greyish Polestar 2 — lowering the cost to around $74,000.
Starting this October, however, such of purchase could cost buyers nearly $160,000.
That price hike will come largely as a result of the federal government’s new 100 per cent tariff on all EVs manufactured in China — which is expected to effect Tesla Inc., Volvo Cars and Volvo’s joint venture subsidiary, Polestar.
In addition, the federal government said it intends to disqualify Chinese-made EVs from its $5,000 incentive program.
Peter Nagle, an automotive economist with the research firm S&P Global Mobility, said the combined effect is likely to increase prices of affected EVs “specifically, immediately, very acutely.”
The tariffs are scheduled to take effect on Oct. 1, meaning that vehicles entering Canada before that are not affected.
