Canada announced on Monday that it will be imposing a 100% tariff on Chinese-made electric vehicles, matching the tariffs imposed by the U.S. government. This decision followed encouragement from U.S. national security advisor Jake Sullivan during a meeting with Canadian Prime Minister Justin Trudeau. In addition, Canada will also impose a 25% tariff on Chinese steel and aluminum.
Trudeau stated that China has given itself an unfair advantage in the global marketplace through subsidies, prompting Canada to take action. Although Chinese brands are not significant players in the Canadian market yet, Chinese EV giant BYD has expressed interest in entering the market next year.
The U.S. government has previously imposed tariffs on various Chinese products, citing concerns about unfair competition due to subsidies provided by the Chinese government. The move by Canada to align with these tariffs is seen as part of a coordinated effort with other economies around the world facing similar challenges.
Canada will also begin a 30-day consultation about possible tariffs on additional Chinese products, including batteries, semiconductors, and solar panels. Despite the potential for retaliation from China, Canada believes it is necessary to take a stand against unfair trade practices that could harm its domestic industries.
Overall, the decision to impose tariffs on Chinese imports reflects a broader effort by Western governments to address the issue of unfair competition, particularly in industries like electric vehicles and renewable energy. Canadian officials hope that by standing together with other countries, they can create a more level playing field for global trade.
Source
Photo credit apnews.com