Canada considers banning China-made software in EVs

Canada is considering a ban on China-made software for electric vehicles (EVs). The potential ban follows Canada’s announcement to implement tariffs on EVs and aluminum supplies from China. The Canadian government may impose 100% tariff rates on China-made products, similar to the United States. 

“We take really seriously intentional Chinese overcapacity, and we take very seriously the security threat from China. That’s why we active decisively in imposing tariffs on Chinese EVs…and we are looking at whether to impose further measures,” Freeland told reporters. 

The United States proposed a similar ban on Chinese and Russian-made vehicle software. The US Department of Commerce proposed banning software and hardware from China and Russia in vehicles, citing national security risks. The ban would affect US automakers like Ford and General Motors. 

“We anticipate at this point that any vehicle that is manufactured in China and sold in the US would fall within the prohibitions,” said the head of the US Department of Commerce. 

Canada seems to be following the United States’ lead regarding trade with China. Earlier in the year, Freeland explained that geopolitics and geoeconomics are back in play given the current state of the world. 

China has not responded to the potential ban on its software or hardware in vehicles shipped to Canada. However, China’s Ministry of Commerce has warned against Canada’s plan to impose 100 tariff rates on its EV imports. China recently launched an anti-discriminatory probe into Canada’s EV import tariffs.

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