Canada is contemplating stringent measures against foreign technology in vehicles, following a similar decision by the United States.

Finance Minister Chrystia Freeland recently revealed that Ottawa is seriously weighing the implementation of restrictions on automotive hardware and software originating from certain countries, notably China and Russia. 

The potential ban would target connected vehicles with external connectivity and autonomous driving capabilities, mirroring the US Bureau of Industry and Security’s proposed rules.

Car makers now face new challenges on top of their existing hurdles in technology and supply chains. If Canada implements these restrictions, it could change how cars are made and sold starting in the next few years. This might force car companies to rethink their manufacturing and international business deals.

Canada’s consideration of this ban follows recent trade actions against China, including a 100% tariff on Chinese-made electric vehicles and a 25% surtax on Chinese steel and aluminum imports, both set to take effect in October. These moves have already prompted China to file a complaint against Canada at the World Trade Organization.

Ontario Premier Doug Ford has voiced strong support for the federal government to align with the US on this issue, emphasizing the importance of protecting national security, strengthening North American supply chains, and safeguarding jobs on both sides of the border.

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