Canada’s Prime Minister, Justin Trudeau on Monday declared a ban on specific imports of electric vehicles made in China punitive duties. This reflects the U.S. and the European Union’s action of raising tariffs on the said imports.
The decision was made in retaliation to what Canada considered as Chinese companies trying to create an excess in the market. What Trudeau said.
“Actors like China have made it an option to play by rules that are more favorable to them in the global market,” Trudeau stated during a roundtable in Halifax, Nova Scotia.
Ottawa is also set to impose a 25 percent tariff on imported steel and aluminum to china, Trudeau said. The levies follow a 30 day public consultation period after announcing tariffs on electric vehicles and products associated with Chinese electronics.
“It’s clear that China is not following the rules generally established,” Rosenblum said. “Primarily because it’s about the important political relationships that are broader than trade itself,” he said.
What is nice about it is that we are doing this in a way, at the same time, in sync with other economies in the world.
The Canadian Government views Canada as a key player in the global competition for placed in the global vehicle supply chain. At the same time there has been domestic pressure on the government to take action on China’s misconduct. Canada has signed trade Agreements worth billions to bolster its manufacturing heartland by securing European automakers at every point of the chain.
Beijing says Strong Discontent
The and representatives met Chinese diplomats claiming the introduction of the January hundred percent tariff on Chinese motor vehicle exports received protest.
To borrow the words often used when describing economic policy measures such as tariff, the spokesperson said, ‘This move is typical protectionism and it is political. Economically, it will injure the trade and economic relations between China and Canada, injure the consumers’ and enterprises’ Canadian interests, and further inhibit the green transition process in the country as it is the case now.
Response to ‘extraordinary threat’
For the last quarter of the year 2021, the US and EU further planted sanction on Chinese EVs with 100% and 38% respectively. At a press event, Mr Trudeau addressed the issue of overcapacity and overproduction of electric vehicles in China, as well as state intervention in the region’s automobile production “Requires us to take action.”
“I mean, if we don’t want to get into this race to the bottom, we’ve got to fight back and that’s where we’re going. The government referred these tariffs as a measure taken in regard to try to respond to this extraordinary threat.”
German industries are particularly at risk, Slovenian debts note both Germany and its detractors and Beijing would retaliate against the tariffs by way of targeting Germany.
Germany, which depends on the market of China, abstained on the July votes by EU member states seeking to impose the provisional tariffs to the Chinese vehicles. German carmakers, who generated a third of their revenue in the past year from China, are worry about any retaliation such measures will lead to.
Berlin wants to move in a way that there are no applicants for the preliminary tariff measures.
