Canada's government has announced a 100 per cent tariff on imports of Chinese-made electric vehicles, aligning with similar measures taken by the United States. Additionally, Prime Minister Justin Trudeau revealed a 25 per cent tariff on Chinese steel and aluminium. Addressing the issue at a cabinet retreat in Halifax, Trudeau criticised China for unfairly positioning itself in the global market.
Earlier this summer, Trudeau's government initiated a 30-day consultation to address concerns raised by Deputy Prime Minister Chrystia Freeland, who highlighted a deliberate effort by Chinese companies to create a global oversupply. This move by Canada follows recent announcements by the United States and the European Commission to increase import tariffs on Chinese electric vehicles.
US encourages Canada for tariffs
US national security advisor Jake Sullivan encouraged Canada to do the same during a meeting with Trudeau and the cabinet minister at a cabinet retreat in Halifax, Nova Scotia on Sunday, August 25. Right now the only Chinese-made EVs imported into Canada are from Tesla, made at the company's Shanghai factory. There are no Chinese-branded EVs sold or imported at the moment.
Freeland has said Canada will act in concert with its allies in the United States and the European Union as North America has an integrated auto sector. Freeland has said her government would ensure Canada doesn't become a dumping ground for Chinese oversupply.
Biden criticises Chinese subsidies for EVs
US President Joe Biden has said Chinese government subsidies for EVs and other consumer goods ensure that Chinese companies don't have to turn a profit, giving them an unfair advantage in global trade. Chinese firms can sell EVs for as little as USD 12,000. China's solar cell plants and steel and aluminium mills have enough capacity to meet much of the world's demand, with Chinese officials arguing their production keeps prices low and would aid a transition to the green economy.
(With inputs from AP)
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