Canada's new tariffs on Chinese electric vehicles provide only a "short reprieve" for Canada's EV industry, according to a recent House Commerce Committee hearing.

Elizabeth Cowan, senior researcher at the Canadian Labor Congress, said on Sept. 16, "This is essentially a short reprieve — a temporary reprieve for Canadian manufacturers in the EV supply chain to actually build what they've promised with significant government investments. build and really start it."

Cowan was testifying before the Standing Committee on International Trade, whose members on Aug. 21 approved a resolution to begin their study on "Protection of Certain Canadian Manufacturing Sectors from Related Chinese Imports and Actions."

"Immediate safeguards are necessary to prevent lasting damage to Canada's ZEV [zero-emission vehicle] industry from Chinese dumping," Kwan said, adding that China's trade practices are harming Canada's nearly $53 billion in support for the EV sector.

This figure comes from the Parliamentary Budget Office (PBO) report published on June 18. The report listed 13 project groups that have announced a total of $52.2 billion in government investment and support for the EV supply chain, including companies such as Honda, Northolt, Stlantis, Volkswagen and GM.

Of the $52.2 billion, the PBO estimated federal support to be $31.4 billion (60 percent) and provincial government support to $21.1 billion (40 percent), primarily from Ontario and Quebec.

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