In a recent development, China has accused Canada of protectionism after Prime Minister Justin Trudeau’s government imposed a 100% tariff on imports of Chinese-made electric vehicles, matching the U.S. duties on Chinese EVs. The Chinese Commerce Ministry expressed strong dissatisfaction with this move, stating that the tariffs would disrupt the stability of global industrial and supply chains, severely impact China-Canada economic and trade ties, and damage the interests of enterprises in both countries.
The Ministry further criticized Canada for violating World Trade Organization (WTO) rules and engaging in trade protectionism despite claiming to support free trade and the multilateral trading system. China firmly opposed Canada’s unilateral tariff measures and urged the country to immediately correct its actions. Beijing also stated that it would take any necessary measures to defend the rights and interests of Chinese companies affected by the tariffs.
The announcement of the tariffs by Canada came after encouragement from U.S. national security adviser Jake Sullivan during a meeting with Trudeau and Cabinet ministers. Sullivan, who began his first visit to Beijing on Tuesday, is likely to discuss American tariffs on Chinese goods with Chinese officials as Beijing continues to recover its economy from the impact of the COVID-19 pandemic.
In response to Canada’s tariffs, a Chinese Foreign Ministry spokesperson urged Canada to refrain from politicizing economic and trade issues. The spokesperson emphasized China’s electric vehicle industry’s technological innovation, well-established industrial and supply chain, and full market competition as factors contributing to its success.
Trudeau also announced that Canada would impose a 25% tariff on Chinese steel and aluminum, citing unfair advantages given to countries like China in the global marketplace. While Chinese-made EVs, including those from Tesla’s Shanghai factory, are imported into Canada, Chinese brands have yet to establish a significant presence in the Canadian market. However, Chinese EV company BYD has indicated its intention to enter the Canadian market as early as next year.
Chinese firms have the capability to sell EVs at competitive prices, with some models priced as low as $12,000. Additionally, China’s solar cell plants, steel, and aluminum mills have the capacity to meet a significant portion of global demand, keeping prices low and supporting the transition to a green economy. Deputy Prime Minister Chrystia Freeland announced that Canada would also consider tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals, and solar panels following a 30-day consultation period.
In conclusion, the imposition of tariffs on Chinese electric vehicles by Canada has sparked tensions between the two countries, with China accusing Canada of protectionism and violating international trade rules. The situation highlights the complexities of global trade relations and the challenges faced by countries in balancing economic interests with fair competition.
