Canada slaps hefty tariffs on Chinese electric cars, sparks backlash
In response to Canada's announcement regarding introducing additional tariffs on the import of electric cars from China, the Ministry of Commerce in Beijing accused the authorities in Ottawa on Tuesday of "blindly following" other countries and urged them to correct their "wrong practices."
On Monday, Canadian Prime Minister Justin Trudeau announced the introduction of a 100 percent tariff on electric cars produced in China starting from October 1. Two weeks later, additional tariffs of 25 percent will also be applied to the import of steel and aluminum from that country.
Beijing reacts to Canada’s decision
China is decidedly unhappy with these actions and strongly opposes them, read the statement from the Ministry of Commerce spokesman.
The Ottawa government was accused of "blindly following certain countries" and taking unilateral measures by raising tariffs, which was assessed as "typical of trade protectionism."
According to the Chinese ministry, this decision could "disrupt the stability of global industrial and supply chains" and "seriously affect economic and trade relations between" these countries.
"China urges the Canadian side to immediately correct its erroneous practices," the statement read.
Reacting to China's dominance
After the European Union and the United States imposed additional tariffs on Chinese electric cars, the Canadian government was concerned that part of China's exports, which had previously gone to the American and European markets, might be redirected to the Canadian market.
The United States announced on May 14 that it would increase tariffs by 100 percent starting August 1. On June 12, the European Commission announced the introduction of interim additional tariffs starting July 4, ahead of a final decision to be made in the fall.
Currently, only Tesla cars produced in Shanghai are imported to Canada from China, but Chinese companies are also suppliers of batteries and components for the production of electric cars. This means competition for production, in which Canada has significantly invested in recent years.
Automobile production in Canada employs over 125,000 people, and the sector has strong unions. The potential of the Canadian supply chain in electric car production is considered the best in the world.
Since 2020, China has become the largest producer and exporter of electric cars, and government subsidies strongly support its sector. In 2023, Chinese electric car exports amounted to approximately 34.8 billion USD, compared to 148 million USD in 2018.
