TORONTO (AP) — The Canadian government announced Monday it will impose 100% tariffs on imports. Electric vehicles made in China It matches US tariffs and follows similar plans announced by the European Commission.
The announcement came after US National Security Adviser Jack Sullivan encouraged it during a meeting with Canadian Prime Minister Justin Trudeau and cabinet ministers on Sunday. Sullivan will make his first visit to Beijing on Tuesday.
Canada will also impose 25% tariffs on Chinese steel and aluminum, Trudeau said.
“Actors like China have chosen to give themselves an unfair advantage in the global market,” he said.
There was no immediate response from China.
Chinese officials may be concerned about that US tariffs With Sullivan as Beijing repairs its economy after the Covid-19 pandemic. US President Joe Biden in May Hit big new charges Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment.
“The United States believes that a united front, a unified approach to these issues will benefit us all,” Sullivan told reporters on Sunday.
Chinese government subsidies for EVs and other consumer goods ensure Chinese companies don’t have to make profits, giving them an unfair advantage in global trade, Biden said.
Chinese companies can EVs can be sold for $12,000. China’s solar cell plants and steel and aluminum plants have enough capacity to meet most of the world’s needs. Chinese officials argue that this keeps their production costs low and helps the transition to a green economy.
Trudeau said of the new tariffs that “this is a challenge we all face as we work in tandem with other economies around the world in alignment. If we all want to go down a race, we have to stand up.”
Canada will also launch a 30-day consultation on possible tariffs on Chinese batteries, battery components, semiconductors, critical minerals, metals and solar panels, Deputy Prime Minister Chrystia Freeland said.
“China has a deliberate state-led policy of overcapacity and oversupply designed to cripple our own industry,” Freeland said. “We will not let that happen to our EV sector, which has shown such promise.”
The only Chinese-made EVs currently imported into Canada are from Tesla, which is manufactured at the company’s Shanghai factory.
“When you think about economic integration with the U.S., Canada has had to go with the U.S. position, more than 75% of our exports go to the U.S.,” said Guy Saint-Jacques, a former Canadian ambassador to China. It reflects the fear that Donald Trump might be the next president of the United States, so they know we have to be very aligned in all of this.
Saint-Jacques said Canada could expect retaliation from China in other industries, with barley and pork being candidates because the Chinese can source them from other countries.
“China wants to send a message,” he said.
