According to sources from the Canadian government, before Canada announced this week that it would impose a 100% tariff on electric cars manufactured in China, Tesla (TSLA.US) had contacted the Canadian government to request a reduction in tariff for its cars.

Following the footsteps of the United States, Canada announced on Monday that it will impose tariffs on all Chinese-made cars sold in the country. This measure will take effect on October 1st and applies to all electric cars exported from China, including those produced by Tesla. The Canadian government had expressed its intention to impose tariffs back in June this year.

Sources said that Tesla had contacted Canada before making an official announcement. They also added that the requested tax rate by the automaker is similar to the rate it receives in the European Union.

Tesla has not disclosed its exports from China to Canada. However, vehicle identification numbers show that the company is exporting Model 3 and Model Y from Shanghai to Canada.

This month, the European Union softened its stance on Tesla by imposing a 9% tariff on cars manufactured by the company in China, while imposing a 36.3% tariff on other Chinese electric car imports.

According to the source, the European Union only considers direct subsidy costs when calculating Tesla's tariffs, while the United States and Canada take into account subsidies, industrial overcapacity, non-market policies, as well as environmental and labor standards.

According to sources, Tesla has not contacted the Canadian government since Monday. Tesla did not immediately comment. The Canadian Ministry of Finance, responsible for tariffs, declined to discuss negotiations with Tesla.

It is understood that in 2023, when Tesla begins to transport electric vehicles manufactured in Shanghai to Canada, imports of cars from China to its largest port of Vancouver increased by 460% compared to the previous year, reaching 44,356 vehicles.

In May of this year, US President Biden announced that tariffs on Chinese electric vehicles would triple to 100%, tariffs on semiconductors and solar batteries would double to 50%, and tariffs on lithium-ion batteries and other strategic commodities would be increased by 25%. According to a letter from Tesla to the US Environmental Protection Agency in July 2023, Tesla has never transported vehicles manufactured in China to the US market.

However, the new tariff plan that was originally set to take effect on August 1st in the US has been postponed to September. Analysts believe that some of the tax rates in the plan may be lowered.

Volvo (VLVLY.US) stated that it is assessing the impact of the increased tariffs in Canada. The Swedish automaker imports EX30, XC60, and a limited number of S90 models from China to Canada, but specific quantities were not disclosed.

Swedish electric vehicle manufacturer (PSNY.US) mainly transports Polestar 2 from China to Canada. The company stated that it is assessing the impact of Canadian tariffs.