In response to the US taking steps to ban Chinese-made software in vehicles, Canada is now considering a similar move, according to Finance Minister Chrystia Freeland. This decision comes as part of the government’s efforts to address Chinese overcapacity and security threats posed by China.
Prime Minister Justin Trudeau’s government has already implemented tariffs on Chinese electric vehicles and other goods, including battery parts and critical minerals. Freeland has defended these tariffs by citing China’s unfair trade practices and state subsidies that undercut other countries’ industries.
However, the legality of these tariffs may be challenged through the World Trade Organization, as China has indicated its intention to contest them. The escalating trade tensions between the US and China continue, with the US proposing new rounds of tariffs.