Ottawa: Canadian Prime Minister Justin Trudeau has announced that Canada will introduce higher tariffs on Chinese-made electric vehicles (EV) and Chinese steel, Canada-based Global News reported.

He made the remarks while speaking to reporters in Halifax on Monday. Speaking at the Liberal cabinet retreat, Justin Trudeau stated, "Shortly, we will be introducing a 100 per cent tariff on Chinese-made electric vehicles and a 25 per cent tariff on Chinese steel and aluminum."

Trudeau stated that the decision was taken to spur electric vehicle manufacturing in Canada. The decision brings Canada in line with the recent US trade policy changes, according to Global News report.

Earlier in May, US President Joe Biden announced that he was increasing tariffs on Chinese EVs from 25 per cent to 100 per cent this year. However, there is only one Chinese EV currently available in the US.

In June, Canada's Finance Minister Chrystia Freeland said that the federal government was concerned by "unfair" Chinese trade practices in the electric vehicle manufacturing sector. She announced the beginning of a consultation process into potential response measures, Global News reported.

Freeland had hinted at what the restrictions being considered by the government might look like. Currently, the only Chinese-made EVs imported into Canada are Teslas manufactured in Shanghai, the report said.

At the time, Freeland stated, "The potential policy actions we are consulting on include a surtax on imports of Chinese EVs under Section 53 of the Customs Tariff Act, changes to which cars are eligible for the existing federal incentives for Zero Emissions Vehicle Program, and potentially broader investment restrictions in Canada."

Earlier in May, Biden announced an increase in tariffs on Chinese imports across a handful of sectors deemed strategic to national security, CNN reported.

The increase in tariffs was announced on imported steel and aluminium, legacy semiconductors, electric vehicles, battery components, critical minerals, solar cells, cranes and medical products. The new tariff rates - 100% on electric vehicles, 50 per cent on solar components and 25 per cent for all other sectors - will take place over the next two years.

Lael Brainard, director of the White House National Economic Council, said, "China's using the same playbook it has before to power its own growth at the expense of others." Brainard said, "China's simply too big to play by its own rules."

While announcing the new tariffs in the Rose Garden, Biden said he seeks "fair competition with China, not conflict," according to CNN report.

He stated, "The fact is, American workers can out-work and out-compete anyone, as long as the competition is fair," according to CNN report. He said, "For too long, it hasn't been fair."

This report is auto-generated from a syndicated feed