Canada imposes tariffs on Chinese electric cars amid trade tensions
In response to Canada's announcement that it would introduce 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 "erroneous practices."
On Monday, Canadian Prime Minister Justin Trudeau announced the introduction of a 100 percent tariff on electric cars produced in China starting from 1 October. Two weeks later, additional 25 percent tariff will also be applied to the import of steel and aluminium from that country.
Beijing reacts to Canada’s decision
The Ministry of Commerce spokesman's statement reads that China expressed its "strong dissatisfaction" with these actions and strongly opposes them.
The Ottawa government was accused of blindly following certain countries and taking unilateral measures by raising tariffs, assessed as a "typical trade protectionism and politically motivated decision."
According to the Chinese ministry, this decision could disrupt global industrial and supply chain stability and "damage trade and economic cooperation between China and Canada."
"China urges the Canadian side to immediately correct its erroneous practices," the statement reads. The Ministry of Foreign Affairs announced that Beijing would take "all necessary measures to safeguard the legitimate rights and interests of Chinese enterprises."
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 14 May that it would increase tariffs by 100 percent starting 1 August, and on 12 June, the European Commission announced the introduction of interim additional tariffs starting 4 July, ahead of a final decision to be made in the autumn.
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, the government said earlier in a communiqué. In 2023, Chinese electric car exports amounted to approximately £27 billion in sales, compared to €134 million in 2018.
