U.S. Trade Representative Katherine Tai has commended Canada for its decision to impose high tariffs on certain Chinese imports. In a statement from her office, Tai stated that Ottawa’s move is an important step towards ensuring fair competition in the electric vehicle, steel, and aluminum industries for workers and businesses. The Canadian government has accused China of deliberately flooding the global electric vehicle market with excessive supply and failing to uphold labor and environmental standards.
Canadian Prime Minister Justin Trudeau recently announced a 100 percent tariff on Chinese-made electric vehicles, effective from October 1st, as well as a 25 percent tariff on Chinese steel and aluminum products starting October 15th. These measures align Canada with the United States, which has also implemented similar rates on Chinese electric vehicles, steel, and aluminum products. The White House has additionally increased tariffs on other Chinese imports such as semiconductors and batteries.
Furthermore, the Canadian government plans to initiate a 30-day consultation period regarding measures on batteries, battery parts, semiconductors, solar products, and critical minerals imported from China. Tai praised Canada’s decision by stating that these new tariffs will safeguard workers and key industries against China’s unfair nonmarket policies that threaten market-oriented industries.
Tai also criticized Beijing for its failure to protect labor rights or enforce environmental protections while promoting fair competition in the market. She expressed her eagerness to collaborate with Minister Mary Ng in order to promote North American jobs, investment opportunities, prosperity while defending workers against unfair non-market actions.
Canada’s imposition of high tariffs on Chinese imports follows opposition leader Pierre Poilievre’s commitment to do so if his Conservative Party were to come into power. This decision is also supported by U.S. national security adviser Jake Sullivan who believes that a coordinated approach among nations benefits everyone involved.
In addition to Canada’s actions against China’s trade practices in the EV industry, the European Union has imposed interim tariffs on battery EV imports from China due to unfair subsidization causing economic harm to EU producers. The European Commission intends to revise these rates downwards after initially setting them between 17.4 percent and 37.6 percent.
The European Commission is expected to conclude its anti-subsidy investigation by November while facing challenges from China at the World Trade Organization (WTO) regarding compliance with global trade rules.
Earlier this month President Joe Biden of the United States joined forces with Mexican President Andrés Manuel López Obrador in implementing measures aimed at closing loopholes allowing Chinese steel and aluminum products into America through Mexico.
Mexico now requires importers of steel products to provide more information about their country of origin and only allows tariff-free exportation if they are melted or poured within Mexico itself.
These efforts follow Mexico’s increase in tariffs imposed upon various goods including steel and aluminum imported from countries without Free Trade Agreements with Mexico.