Deputy Prime Minister and Finance Minister Chrystia Freeland said Tuesday she is “absolutely” considering following the U.S. move to ban vehicle hardware and software from China or Russia.
“Our government has made it very clear that we take really seriously intentional Chinese overcapacity and we take very seriously the security threat from China,” Freeland said in Ottawa.
Freeland’s comments come a day after the U.S. Bureau of Industry and Security, a branch of the U.S. Department of Commerce, announced its plans to “prohibit the sale or import of connected vehicles integrating specific pieces of hardware and software … with a sufficient nexus to” China or Russia.
Freeland made her remarks in answer to a question and did not provide specific details, other than to say the decision was being taken in consultation with Canadian industry and labour groups.
The U.S. announcement said that country’s proposed new rules would ban hardware and software that allow for “external connectivity and autonomous driving capabilities in connected vehicles.”
Deputy Prime Minister and Finance Minister Chrystia Freeland responds to a question about whether Canada is also considering following the U.S. in how it is looking to ban Chinese-made software in vehicles.
In a statement, the Commerce Department said it was making the move because “certain technologies originating from [China] or Russia present an undue risk to both U.S. critical infrastructure and those using connected vehicles.
“Today’s action is a proactive measure designed to protect our national security and the safety of U.S. drivers,” the statement said.
U.S. Secretary of Commerce Gina Raimondo said the move was also being made to protect the “privacy of U.S. citizens.”
The Commerce Department said the new rules would apply to cars, trucks and buses, but would not include agricultural or mining vehicles, that aren’t used on public roads.
The announcement said the software ban would impact vehicles starting with the 2027 model year, while the hardware ban would impact vehicles beginning in the 2030 model year.
Following U.S.
Last month, Prime Minister Justin Trudeau announced a 100 per cent tariff will be applied to all Chinese-made electric vehicles (EVs) beginning Oct. 1, after the U.S. did the same.
Trudeau also announced his government will apply a 25 per cent surtax on imports of steel and aluminum products from China, effective Oct. 15.
Earlier this month, China lodged a complaint against Canada at the World Trade Organization over the tariffs on EVs, steel and aluminum products.
“Canada has disregarded WTO rules and violated its commitments within the WTO by proposing to impose additional tariffs of 100 per cent and 25 per cent,” China’s Commerce Ministry said in a statement.
Canada’s decision to consider following the U.S. ban on vehicle hardware and software from China and Russia comes a day after Ontario Premier Doug Ford called on the federal government to follow the U.S. move.
“To protect our shared national security, Canada must stay in lock-step with our American allies and do the same,” Ford said in a post on X.
“By taking this step with the U.S., we can protect our critical infrastructure from foreign interference, build up our North American supply chains and protect good jobs on both sides of the border.”