BYD plans to enter Canada’s auto market amid talks of tariffs on China EV imports

$BYD COMPANY (01211.HK)$ $Tesla (TSLA.US)$ $NIO Inc (NIO.US)$ $XPeng (XPEV.US)$ The article reported that BYD plans to enter Canada’s auto market, according to public documents filed in Ottawa. At the same time, Canada is still considering tariffs on Chinese electric vehicle (EV) imports, which might affect BYD’s plans.

Canada has been doing its due diligence regarding tariffs on China-made EVs. On July 2, 2024, the Canadian government opened a 30-day public consultation period to discuss the potential tariffs. In mid-July, Canada’s Finance Minister talked to business and labor about potential train barriers related to the tariffs.

“Geopolitics and geoeconomics is back. That means that Western countries— and very much the US — is putting a premium on secure supply chains and is taking a different attitude towards Chinese overcapacity. And that means that Canada plays an even more important role for the United States,” said Canada’s Finance Minister and Deputy Prime Minister Christie Freeland.

My Take: Chinese EVs like BYD overcapacity problem is forcing other countries like Canada to consider imposing high tariffs. Canada fears that China heavy subsidies on EV are giving an unfair competition with other EV brands. US has already imposed 100% higher tariff on imported Chinese EVs which take effect in August. The US government is blocking Beijing's circumvention effort which can be done by amending the United States-Mexico-Canada Agreement (USMCA) or through supplemental agreements, or an investment screening mechanism separate from the USMCA.

2. Nio's and BYD's plans to export EV to the US thwarted by New Tariffs

Source:

BYD plans to enter Canada’s auto market amid talks of tariffs on China EV imports - Teslarati

$BYD COMPANY (01211.HK)$ $BYD Co. (BYDDF.US)$ $S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Tesla (TSLA.US)$ $VOLKSWAGEN A G (VWAGY.US)$ $NIO Inc (NIO.US)$ $Li Auto (LI.US)$ $XPeng (XPEV.US)$ $General Motors (GM.US)$ $Ford Motor (F.US)$ $Rivian Automotive (RIVN.US)$ $MERCEDES-BENZ GROUP AG (MBGAF.US)$ $TOYOTA MOTOR CORP (TOYOF.US)$ $GEELY AUTO (00175.HK)$ $Stellantis NV (STLA.US)$

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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.

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