Canada imposes a 100% tariff on imports of Chinese-made electric vehicles, matching the US

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TORONTO -- Canada’s government on Monday announced it is imposing a 100% tariff on imports of Chinese-made electric vehicles that matches U.S. tariffs and follows similar plans announced by the European Commission.

This announcement came after encouragement from U.S. national security advisor Jake Sullivan during a meeting with Canadian Prime Minister Justin Trudeau and his cabinet on Sunday. Sullivan is scheduled to visit Beijing on Tuesday.

Trudeau declared that Canada will also implement a 25% tariff on Chinese steel and aluminum.

“Countries like China have unfairly benefited in the global market,” he added.

There was no immediate response from China.

Chinese officials are expected to voice concerns about American tariffs during Sullivan's visit as Beijing focuses on rebuilding its economy post-pandemic. In May, U.S. President Joe Biden imposed substantial new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum, and medical equipment.

“The U.S. believes that a collective effort and coordinated approach to these issues benefits all of us,” Sullivan stated to reporters on Sunday.

Biden has argued that Chinese government subsidies for EVs and other consumer goods create an unfair advantage in global trade, allowing Chinese companies to operate without the need for profitability.

Chinese companies can offer EVs for as low as $12,000 . China's solar cell plants and steel and aluminum mills possess the capacity to meet a large portion of the world's demand. Chinese officials contend that their production keeps prices low and would contribute to a transition towards a green economy.

“We are taking these actions in alignment, concurrently, with other global economies that recognize this as a shared challenge,” Trudeau said regarding the new tariffs. “If we want to avoid a race to the bottom, we need to take a stand.”

Currently, the only Chinese-made EVs imported into Canada are Teslas, produced at the company's Shanghai factory.

Canada "had to side with the U.S. due to our significant economic ties. Over three-quarters of our exports go to the U.S.,” stated Guy Saint-Jacques, a former Canadian ambassador to China. “This demonstrates their concern about a potential Donald Trump presidency, leading them to seek alignment on this matter.”

Saint-Jacques suggested that Canada should expect retaliatory measures from China in other sectors, mentioning barley and pork as potential targets as China can source them elsewhere.

“China will want to send a message,” he said.