Canada announced on Monday that it will impose a 100% tariff on imports of Chinese-made electric vehicles, in response to what Western governments claim are unfair subsidies given to China’s industry. This decision was influenced by U.S. national security adviser Jake Sullivan during a meeting with Canadian Prime Minister Justin Trudeau. In addition to the tariff on electric vehicles, Canada will also impose a 25% tariff on Chinese steel and aluminum.
Chinese brands are not yet prominent in the Canadian market, although EV giant BYD has established a Canadian entity and plans to enter the market next year. The U.S. has already imposed tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum, and medical equipment. President Joe Biden has criticized China for providing subsidies that give Chinese companies an unfair advantage in global trade.
Canada plans to launch a 30-day consultation on possible tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals, and solar panels. Deputy Prime Minister Chrystia Freeland stated that China’s intentional state-directed policy of overcapacity and oversupply could harm Canada’s EV sector.
Experts anticipate retaliation from China in other industries, such as barley and pork, due to Canada’s economic integration with the U.S. Former Canadian ambassador to China, Guy Saint-Jacques, believes that China will want to send a message through retaliatory measures. Canada is aligning itself with the U.S. and other economies to address the challenges posed by Chinese subsidies and unfair trade practices.
Photo credit
www.nbcnews.com