Tesla slammed again as Canada raises Chinese EV tariffs to match U.S.

Plus, Exxon and the coming oil shock

In today’s edition:

— Canada’s new 100% tariffs on Chinese EVs to particularly hurt Tesla

— Exxon and the coming oil shock

— Europe tariffs, cutbacks in subsidies muddle EV rankings midyear as sales fall

— Climate activists hold funeral in Iceland for 15 glaciers lost to global warming

— Residential solar installations increasingly include battery storage as blackouts threaten

— IMF launches ‘data gaps’ initiative to boost economic decisions around carbon reduction

NASA Astronaut and U.S. Navy Commander Matthew Dominick’s photo of the moon setting over the Pacific Saturday from the ISS has gone viral. See more: X.

A late summer of pain for Tesla TSLA 0.00%↑ amid new tariffs on Chinese electric vehicles grew worse this week after Canada joined both the U.S. and Europe to impose harsh new taxes on imports of EVs such as Tesla’s from China and the popular BYD models.

Canada chose to mimic new tariffs imposed by the Biden Administration, which take effect at the end of the month, and slap 100% import taxes on all vehicles made in China. The European Union last week announced a ladder of new import taxes on Chinese EVs, depending on the model, but maxing out at 36%. Of the three, Canada’s likely hurt the worst as the country imports just about all of its EVs.

Canadian Prime Minister Justin Trudeau, who had hoped to reset relations with China when he took office in 2015, said the latest taxes were in retaliation for clear violation of international trade rules by China, adding taxes on Chinese steel as well. Analysts said the charges will hurt Tesla, which sold about 37,000 vehicles in Canada in 2023, double what it had the previous year. Tesla shares are down about 10% in August, but up almost 16% for the entire summer.

The tariffs come as China has established itself as just about the only country that can profitably make trendy and efficient electric vehicles at a decent price for consumers, causing sales of its BYD models to soar — not just at home but in foreign markets such as Latin America and elsewhere in Asia. It’s Xpeng debuted a new model earlier today for the equivalent of $16,000.

For the EV industry as a whole, it’s another hit in a distressing year of slowing sales and declining investment, as governments pull back on subsidies and union complaints about the new models rise. China has yet to react to any of the tariffs but we expect its response will be well coordinated.

Don’t forget to contact me directly if you have suggestions or ideas dcallaway@callawayclimateinsights.com.

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In 1989, the tanker Exxon Valdez ran aground in Alaska’s Prince William Sound and dumped 11 million gallons of crude that damaged more than 1,000 miles of pristine coastline. Photo: NOAA National Ocean Service/flickr.

Exxon and the coming oil shock