Canada has announced a 100% tariff on imports of Chinese-made electric vehicles, following the lead of the U.S. The move is in response to what Western governments believe are unfair subsidies given to the Chinese industry, providing them with an advantage in the global marketplace. The decision came after encouragement from U.S. national security adviser Jake Sullivan during a meeting with Canadian Prime Minister Justin Trudeau. In addition to the tariffs on electric vehicles, Canada will also impose a 25% tariff on Chinese steel and aluminum. There was no immediate response from China.
Chinese electric vehicle brands are not yet a major player in Canada, but an EV giant, BYD, has established a Canadian corporate entity indicating plans to enter the market next year. Chinese officials are likely to raise concerns about American tariffs with Sullivan as Beijing works to revive its economy post-Covid-19.
President Biden has previously imposed tariffs on Chinese goods, including electric vehicles, solar cells, steel, aluminum, and medical equipment, citing unfair subsidies given by the Chinese government. Canada’s decision to impose tariffs aligns with a coordinated approach by other countries facing similar challenges. The country will also consult on possible tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals, and solar panels.
Experts predict that Canada may face retaliation from China in other industries such as barley and pork. Former Canadian ambassador to China, Guy Saint-Jacques, noted the economic integration with the U.S. as a factor in Canada’s decision to align with the U.S. position on tariffs.
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