Canada has recently joined the U.S. and European Union (EU) in imposing tariffs on China as it imposes new tariffs on Chinese electric vehicles, aluminum and steel.
Citing sources, Bloomberg reported on the 26th (local time) that the Canadian government plans to impose 100% new tariffs on Chinese electric vehicles and 25% on steel and aluminum products. In this regard, Canadian Prime Minister Justin Trudeau will announce details of the tariff policy at a cabinet meeting in the economic and diplomatic sectors.
According to Bloomberg, Canada’s tariffs on China are being carried out in coordination with the U.S. and its Western allies in Europe and to protect manufacturing in Canada. Canada is a rich country in natural resources and raw materials, but the manufacturing industry, such as automobile parts and aerospace industries, accounts for about 10% of the manufacturing industry, just as large as energy and mining. The U.S. accounts for a large portion of foreign trade, as Canada exported 1.5 million light vehicles annually to the U.S. last year alone. According to Statistics Canada, the number of Chinese electric vehicles imported by Canada surged from 100 million Canadian dollars as of 2022 to 2.2 billion Canadian dollars last year.
Leading Canada’s new tariff policy on China is Finance Minister Chrystia Freeland. Bloomberg called him “a leading figure who supports a tough approach to Chinese auto exports and advocates a closer trade alliance with the United States.” In June this year, Freeland warned of tariffs, saying Canadian companies faced unfair competition due to China’s state-led auto industry policy.
Earlier, the EU also decided to impose tariffs of up to 46.3% on Chinese electric vehicles starting in November. The U.S. government also plans to increase tariffs on Chinese electric vehicles from 25% to 100%.
Prior to the move, Canada’s steel and aluminum industries have also urged China to limit imports, saying that low-cost steel and aluminum products put jobs at risk.
JENNIFER KIM
US ASIA JOURNAL
