Despite trade war with U.S., Canada won’t drop tariffs on Chinese EVs, Champagne says

The federal government is not considering dropping tariffs it imposed last year on Chinese electric vehicles (EVs), steel and aluminum, despite Beijing’s retaliation and U.S. President Donald Trump’s decision to launch a trade war with Canada, according to the industry minister.

 

Ottawa imposed a 100 per cent import tax on Chinese EVs and a 25 per cent import tariff on Chinese steel and aluminum last October. Beijing retaliated over the weekend by imposing nearly $4 billion in tariffs on Canadian agricultural products, including canola oil and pork.

 

“We’re going to stand strong,” said Francois-Philippe Champagne, minister of innovation, science and industry, in an interview with Vassy Kapelos on CTV News Channel’s Power Play. “We want to protect our industry. We want to protect our workers. We want to protect our communities.”

 

The federal government, following the lead of then-U.S. President Joe Biden’s administration, imposed a 100 per cent import tax on EVs produced in China in October of last year, accusing Beijing of “distorting global trade” by exporting EVs at “unfairly low prices.”

Ottawa also imposed a 25 per cent import tax on Chinese-made steel and aluminum last October, accusing China of “pervasive subsidization” of its steel and aluminum industry.

 

In the wake of Trump’s decision to launch a trade war with Canada and China’s decision to impose new tariffs on Canadian products, B.C. Premier David Eby urged the federal government to rethink its tariff policy with all countries, including China.

 

“We don’t want to get crushed between the two biggest economies in the world.

 

Eby says the tariffs imposed last October on Chinese EVs, steel and aluminum were imposed to “curry favour” with the incoming Trump administration, but now it’s clear Trump is “completely indifferent” towards Canada’s policy towards China.

 

“We understood that he was concerned about security issues related to China, and yet he is coming after Canada far more aggressively than he is the government of China,” Eby told reporters Monday.

 

When pressed on Eby’s remarks, Champagne was adamant: Canada’s tariffs on Chinese EVs, steel and aluminum would remain in place.

 

“In this case, you have China, who does not respect the rules,” Champagne said. “They’re dumping products here, and cheap products, and therefore that would be hurting our Canadian economy and industry.”

 

 

 

 

 

This article was first reported by CTV News