Canada has announced a 100% tariff on Chinese-made electric vehicles, matching US tariffs and echoing European Commission plans. This decision follows a meeting between US national security advisor Jake Sullivan and Canadian Prime Minister Justin Trudeau. Trudeau also confirmed a 25% tariff on Chinese steel and aluminum, citing unfair competitive advantages provided by Chinese subsidies, which allow Chinese companies to persist without turning a profit. As such, they can sell EVs for prices as low as $12,000.
Sullivan, who will on Tuesday visit Beijing for the first time, on Sunday said, "The US does believe that a united front, a coordinated approach on these issues benefits all of us." President Biden had imposed tariffs in May on Chinese EVs, advanced batteries, solar cells, steel, aluminum, and medical equipment, reinforcing the stance against China's advantageous subsidies. Trudeau stated, "We're doing it in alignment, in parallel, with other economies around the world."
The Chinese government has yet to respond, but officials are expected to bring up these tariffs with Sullivan. China argues its manufacturing capabilities and subsidies benefit global markets by keeping prices low and supporting green economic transitions. The only Chinese-made EVs currently imported into Canada come from Tesla's Shanghai factory. Former Canadian ambassador to China Guy Saint-Jacques warned of potential retaliation from China, possibly impacting Canadian industries like barley and pork. "China will want to send a message," Saint-Jacques commented. (This story was generated by Newser's AI chatbot. Source: the AP)
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