Canada has announced the imposition of a 100% tariff on Chinese-made electric vehicles, as well as a 25% tariff on Chinese steel and aluminum. This decision was made following encouragement from U.S. national security adviser Jake Sullivan during a meeting with Canadian Prime Minister Justin Trudeau. The goal is to address what Western governments see as China’s unfair advantage in the global marketplace due to subsidies provided to its industry.
The tariffs are part of a coordinated effort with other countries to address concerns about Chinese government subsidies for EVs and other consumer goods, which give Chinese companies an unfair advantage in global trade. President Joe Biden had previously imposed tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum, and medical equipment.
China has not yet responded to Canada’s announcement of tariffs. However, Chinese firms are known to sell EVs at low prices due to their production capacity. Canadian officials have indicated that they will also consider tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals, and solar panels to protect their own industries.
Former Canadian ambassador to China, Guy Saint-Jacques, warned that Canada can expect retaliation from China in other industries such as barley and pork. Despite the potential for retaliation, Canadian officials believe it is necessary to take a stand against China’s unfair trade practices to protect their domestic industries.
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