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tesla shanghai factory

on august 29, reuters quoted canadian government sources as saying that before canada announced this week that it would impose a 100% tariff on chinese-made electric vehicles, tesla had approached canada and asked for lower tariffs on its cars.

canada said on monday it would impose a 100% tariff on electric vehicles made in china. the tariff will take effect on october 1 and apply to all electric vehicles imported from china, including those produced by tesla.

sources said tesla approached canada before canadian officials announced the tax increase, asking it to reduce its tax rate to a level comparable to that of the european union.

tesla does not disclose its exports from china to canada, but vehicle identification codes show that model 3 compact sedans and model y crossovers are being exported to canada from shanghai.

the eu softened its stance on tesla this month, imposing a 9% tax on its cars, lower than the 36.3% it imposes on other chinese electric vehicles. the eu only considered direct subsidy costs when calculating its tariffs on tesla, while the united states and canada considered subsidies, industrial overcapacity, non-market policies, and environmental and labor standards, the sources said.