Canada announced Monday it is launching a 100% tariff on imports of Chinese-made electric vehicles, matching U.S. tariffs imposed over what Western governments say are China's subsidies that give its industry an unfair advantage, reports AP.
The announcement came after encouragement by U.S. national security advisor Jake Sullivan during a meeting with Canadian Prime Minister Justin Trudeau and Cabinet ministers Sunday. Sullivan is making his first visit to Beijing on Tuesday.
Trudeau said Canada also will impose a 25% tariff on Chinese steel and aluminum. "Actors like China have chosen to give themselves an unfair advantage in the global marketplace," he said. There was no immediate response from China.
One of the Chinese-made EVs imported into Canada is from Tesla, made at the company's Shanghai factory, though the U.S. company could avoid the tariff by switching to supplying Canada from factories in the U.S. or Germany.
Chinese brands are not yet a player in Canada. However, Chinese EV giant BYD established a Canadian corporate entity last spring and has indicated it intends to try and enter the Canadian market as early as next year.
Chinese officials are likely to raise concerns about the American tariffs with Sullivan as Beijing continues to repair its economy after the COVID-19 pandemic. U.S. President Joe Biden in May slapped major new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment.
"The U.S. does believe that a united front, a coordinated approach on these issues benefits all of us," Sullivan told reporters on Sunday.
© 2024 - All Rights with The Financial Express
