Deputy Prime Minister and Finance Minister Chrystia Freeland said Tuesday that the U.S. is “absolutely” considering following suit with moves to ban Chinese- and Russian-made vehicle hardware and software.
“My government has been clear that it takes China’s deliberate excess capacity very seriously and that it takes the security threats from China very seriously,” Freeland said in Ottawa.
Freeland’s comments came the day after the Commerce Department’s Bureau of Industry and Security announced plans to “prohibit the sale or importation of connected vehicles that integrate certain hardware and software that have sufficient ties to China or Russia.”
Freeland, speaking in response to a question, did not provide specific details other than to say the decision was made in consultation with Canadian business and labour groups.
The U.S. announced that its proposed new rules would ban hardware and software that enables “external connectivity and autonomous driving functions for connected cars.”
In a statementThe Commerce Department cited the following reasons for this action: [China] Alternatively, Russia poses undue risks to both U.S. critical infrastructure and people who use connected cars.
“Today’s action is a proactive step designed to protect our national security and the safety of American drivers,” the statement said.
Commerce Secretary Gina Raimondo said the move was also being taken to protect “the privacy of the American people.”
The Commerce Department said the new rules would apply to cars, trucks and buses, but would not cover agricultural or mining vehicles that are not used on public roads.
The software ban will affect vehicles from the 2027 model year onwards, while the hardware ban will affect vehicles from the 2030 model year onwards, according to the announcement.
Following the US
Last month, Prime Minister Justin Trudeau announced that China would follow the US lead and impose 100% tariffs on all Chinese-made electric vehicles (EVs) from October 1.
Trudeau also announced that a 25% tariff would be imposed on steel and aluminum imports from China starting October 15.
Earlier this month, China filed a lawsuit against Canada at the World Trade Organization over tariffs on electric vehicles, steel and aluminum products.
“By proposing to impose additional tariffs of 100 percent and 25 percent, Canada has ignored WTO rules and violated its commitments within the WTO,” China’s Commerce Ministry said in a statement.
Canada’s decision to consider following the U.S. ban on Chinese- and Russian-made automotive hardware and software comes a day after Ontario Premier Doug Ford called on the federal government to follow the U.S. lead.
“To protect our shared national security, Canada must stand in lockstep with our American allies and do the same,” Ford said in a post on X.
“By taking this step with the United States, we can protect our nation’s critical infrastructure from foreign interference, build North American supply chains, and safeguard good jobs on both sides of the border.”
