Canada recently announced a 100% tariff on Chinese-made electric vehicles, aligning with U.S. tariffs in response to alleged unfair subsidies benefiting China’s industry. This decision follows a meeting between U.S. national security advisor Jake Sullivan and Canadian Prime Minister Justin Trudeau, with Sullivan set to visit Beijing soon.
In addition to EV tariffs, Canada plans to impose a 25% tariff on Chinese steel and aluminum. While Chinese EV brands have yet to enter the Canadian market, BYD has expressed interest in doing so next year.
The U.S. and Canada aim to create a united front against perceived unfair trade practices, with Biden citing Chinese subsidies as giving companies an unfair advantage. Canada also plans consultations on tariffs for various Chinese products to prevent overcapacity and protect its domestic industries.
Former Canadian ambassador Guy Saint-Jacques suggests that potential Chinese retaliation could target Canadian exports like barley and pork. Despite potential repercussions, Canada stands firm in its resolve to address unfair trade practices.
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