China Increases Pressure as Canada Reviews Its EV Tariffs | Carscoops

      It’s no surprise that opinions are divided on the influx of Chinese-made electric vehicles (EVs) in the Canadian market.

      Canada imposed a complete 100 percent tariff on Chinese EVs to safeguard its own automotive sector. In response, China enacted substantial tariffs on significant Canadian agricultural exports. Some Canadian provincial leaders are advocating for the removal of these tariffs to support canola farmers.

      China is unhappy with the 100 percent tariffs that Canada established on its imports, including electric vehicles, last October. In an effort to persuade Ottawa to rethink its position, Beijing has suggested it would consider lifting its retaliatory tariffs on Canadian agricultural products.

      Nonetheless, the head of Canada’s automotive parts industry has warned against easing these restrictions, alerting that it might lead to a surge of inexpensive Chinese EVs in the market.

      Trade Disputes Intensified

      When the tariffs were implemented, Canada characterized them as essential steps to protect national security and bolster domestic manufacturing. Officials maintained that China's electric vehicle sector was benefiting from unfair state support.

      Beijing's reaction was prompt, imposing tariffs on Canadian agricultural products, including a 100 percent duty on canola oil and meat, alongside a 75.8 percent tariff on canola seeds.

      According to the Chinese ambassador, Wang Di, Beijing is prepared to reduce its tariff measures if Canada reciprocates.

      “If Canada eliminates the unilateral unjustified tariffs on Chinese products, China will respond in kind,” he stated, emphasizing that if the tariffs on EVs are lifted, China would also reduce its tariffs on Canadian products.

      The Canadian government is reportedly conducting an informal assessment of its tariffs on Chinese EVs, as per CTV News. It has been noted that since the beginning of the trade dispute, exports from Saskatchewan plummeted by 76 percent in August compared to the previous year.

      Premiers from both Manitoba and Saskatchewan have urged for a decrease in tariffs to support the local canola sector.

      A Split Opinion

      However, Flavio Volpe, president of the Canadian Automotive Parts Manufacturers’ Association, has criticized any initiatives to remove the tariffs on Chinese EVs, stating,

      “I am publicly reminding the premiers, that if Canada is in a trade conflict with another country, the response must be a Canadian one,” he told CTV.

      “These Chinese EVs are not produced for profit; they are subsidized. We’re involved in a strategic competition, and the sole change has been that the Chinese ambassador stated, ‘If you do this, we’ll offer you that.’ And, to my knowledge, the Chinese ambassador is dispatched from Beijing, not Ottawa.”

      Sources: CTV News