Tesla Asked Canada for Lower Tariff on China-Made EVs, Government Source Says

OTTAWA—Before Canada said this week it was imposing a 100 percent duty on Chinese-made electric vehicles, Tesla approached Ottawa and asked for a lower tariff on its autos, a Canadian government source said on Wednesday. Canada, following the lead of the United States, said on Monday it was setting the tariff for all Chinese-made vehicles sold in the country because of what it called China’s intentional, state-directed policy of over-capacity. The duties—effective Oct. 1—apply to all EVs shipped from China, including those made by Tesla. In June, Ottawa had flagged its intention to impose duties. The source, who requested anonymity given the sensitivity of the situation, said Tesla approached Canada before the official announcement. The automaker asked for a rate similar to what it received in the European Union, the source said....