Canada to Consider Matching U.S. Ban on Chinese, Russian Auto Parts

By Paul Vieira

OTTAWA--Canadian Finance Minister Chrystia Freeland signaled Tuesday the government is ready to match a proposed U.S. ban on Chinese and Russian components inside connected vehicles.

The U.S. Commerce Department on Monday proposed banning key software and hardware from China and Russia in connected vehicles on U.S. roads. The Biden administration fears Beijing and Moscow could collect data on American infrastructure and drivers -- as well as hack communications needed to keep connected vehicles operational.

Freeland, at a press conference Tuesday, said Canadian officials are considering following the U.S. lead. "We take very seriously the security threat in China," she said.

The premier of Ontario, the Canadian province which is home to the bulk of the country's auto sector, called on federal officials to match the U.S. move and remain in lockstep with U.S. policy.

Starting in October, Canada intends to slap a 100% surtax on all Chinese-made electric vehicles, and a 25% surtax on imports of steel and aluminum products from China, which also happened to largely match Biden administration policy. Canadian officials are also considering surtaxes on additional Chinese goods such as critical minerals, batteries and semiconductors.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

September 24, 2024 10:34 ET (14:34 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.