Canada has announced the launch of a 100% tariff on imports of Chinese-made electric vehicles, matching tariffs imposed by the United States. This decision was made in response to what Western governments have identified as unfair subsidies given to the Chinese industry, giving them an advantage in the global marketplace. Additionally, Canada will impose a 25% tariff on Chinese steel and aluminum. Chinese EV giant BYD has expressed interest in entering the Canadian market next year.
President Joe Biden has also implemented new tariffs on Chinese electric vehicles, batteries, solar cells, steel, aluminum, and medical equipment. This move aims to address Chinese subsidies that allow their companies to sell EVs at significantly lower prices, giving them an unfair advantage in global trade.
Canada’s decision to implement these tariffs aligns with the U.S. position to address the challenges posed by China’s state-directed policies of overcapacity and oversupply. Deputy Prime Minister Chrystia Freeland announced a 30-day consultation to consider additional tariffs on Chinese battery parts, semiconductors, critical minerals, metals, and solar panels.
It is expected that Canada may face retaliation from China in other industries, such as barley and pork. Former Canadian ambassador to China, Guy Saint-Jacques, emphasized the need for alignment with the U.S. position due to the strong economic integration between the two countries. Despite potential retaliation, Canada is determined to protect its EV sector and prevent Chinese policies from harming its industry.
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