Justin Trudeau takes a hit at the Chinese electric vehicle (EV) industry with the announcement that Ottawa will implement 100% tariffs on EV imports and 25% tariffs on Chinese steel and aluminium, reflecting similar actions taken by the US. According to the Financial Times, Trudeau stated that the EV tariffs are being introduced because China is “not playing by the same rules.” This move is the latest in a series of measures by the US and its allies to address what they consider unfair economic practices by China.
“Actors like China have chosen to give themselves an unfair advantage in the global marketplace.” Trudeau said in Halifax, Nova Scotia during a cabinet retreat.
This announcement followed a meeting between US national security adviser Jake Sullivan and the Canadian prime minister, where Sullivan encouraged Ottawa to align with Washington on tariff impositions. Sullivan made a stop in Canada on his way to China, where he is scheduled to meet with Chinese foreign minister Wang Yi.
Since President Joe Biden assumed office in 2021, his administration has made significant efforts to convince American allies to collaborate with Washington in countering China. Speaking in Canada on Sunday, Sullivan emphasized that a “united front” would be advantageous for the US and its partners, according to the Financial Times.
According to a report from Reuters, Canadian imports of automobiles from China to its largest port, Vancouver, jumped 460% year over year to 44,356 in 2023, when Tesla started shipping Shanghai-made EVs to Canada.
Prime Minister Justin Trudeau said Ottawa was acting to counter what he called China’s intentional, state-directed policy of over-capacity.
The report states that a spokesperson for China’s Commerce Ministry made a statement claiming that Canada’s move “will disrupt the stability of global industrial and supply chains and seriously undermine the global economic system and economic and trade rules.”
The Canadian tariffs mirror both recent US actions on Chinese EVs and the EU’s planned tariffs, though at lower rates than those of the US and Canada. Washington and its allies are worried that China, with its dominant market position, might inundate global markets with EVs. The EU tariffs, anticipated to be approved by the end of October, could range from 9% to 36.3%, in addition to the existing 10% levies.
