Canada recently announced a 100% tariff on imports of Chinese-made electric vehicles, mirroring similar duties imposed by the United States. The move has sparked accusations of protectionism from China, with the Chinese Commerce Ministry expressing strong dissatisfaction and opposition to the tariffs.
The Ministry criticized Canada for violating World Trade Organization rules and engaging in trade protectionism. It warned that the tariffs could disrupt global industrial and supply chains, severely impact China-Canada economic relations, and harm the interests of businesses in both countries.
China urged Canada to correct its actions and stated that it would take necessary measures to defend the rights of Chinese companies. The announcement of tariffs on Chinese steel and aluminum was also made by Canada, with Prime Minister Justin Trudeau emphasizing the need to address unfair advantages in the global marketplace.
Notably, one of the Chinese-made electric vehicles affected by the tariffs is from Tesla, produced at the company's Shanghai factory. However, Tesla could potentially avoid the tariffs by supplying Canada from its U.S. or German factories.
While Chinese brands have yet to establish a significant presence in Canada's electric vehicle market, Chinese company BYD has expressed interest in entering the Canadian market next year. Chinese firms are known for offering electric vehicles at competitive prices, with the potential to disrupt the market.
Deputy Prime Minister Chrystia Freeland announced plans for a consultation on possible tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals, and solar panels. The Canadian government aims to protect its electric vehicle sector from what it perceives as China's state-directed policy of overcapacity and oversupply.
As tensions rise between Canada and China over trade issues, the global electric vehicle market faces uncertainty. The outcome of these tariff measures and consultations could have significant implications for the future of economic relations between the two countries.
