Canada Escalates Trade Measures Against China: Higher Tariffs on EVs and Steel

Canadian Prime Minister Justin Trudeau announced higher tariffs on Chinese-made electric vehicles and steel to boost domestic manufacturing. The move aligns with recent US trade policy changes as both nations respond to perceived unfair Chinese trade practices and aim for fair competition in the global market.

Canadian Prime Minister Justin Trudeau has announced that Canada will introduce higher tariffs on Chinese-made electric vehicles (EV) and Chinese steel, according to Canada-based Global News. He made the remarks while speaking to reporters in Halifax on Monday during the Liberal cabinet retreat. Trudeau stated, "Shortly, we will be introducing a 100 per cent tariff on Chinese-made electric vehicles and a 25 per cent tariff on Chinese steel and aluminum."

Trudeau clarified that the decision aims to stimulate electric vehicle manufacturing in Canada. The move brings Canada into alignment with recent US trade policy changes. Earlier in May, US President Joe Biden announced an increase in tariffs on Chinese EVs from 25 per cent to 100 per cent this year. Currently, there is only one Chinese EV available in the US.

In June, Canada's Finance Minister Chrystia Freeland voiced concerns over "unfair" Chinese trade practices in the EV sector and launched a consultation process on potential responses. The only Chinese-made EVs imported into Canada are Teslas manufactured in Shanghai. Freeland indicated that the government might impose a surtax on imports of Chinese EVs and enact changes to federal incentives for the Zero Emissions Vehicle Program.

Biden also announced new tariffs on imported steel, aluminum, and other essential sectors, which will be implemented over the next two years. Lael Brainard, director of the White House National Economic Council, stated that China's growth strategy disadvantages others. Biden emphasized that the aim is fair competition with China, not conflict, advocating that American workers can excel when the competition is fair.

(With inputs from agencies.)