Canada has announced a 100% tariff on imports of Chinese-made electric vehicles, matching tariffs imposed by the U.S. The move comes after U.S. national security advisor Jake Sullivan urged Canadian Prime Minister Justin Trudeau to take action against what Western countries see as unfair subsidies benefiting China’s EV industry. Trudeau also announced a 25% tariff on Chinese steel and aluminum. Chinese brands are not yet big players in Canada, but Chinese EV giant BYD has plans to enter the market next year. The Chinese Embassy criticized the move, calling it trade protectionism that violates WTO rules. Canada is planning to consult on possible tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals, and solar panels. A former Canadian ambassador to China believes there may be retaliation from China in other industries. Trudeau emphasized the need for a coordinated global response to the trade challenges posed by China. USA President Joe Biden has also imposed new tariffs on Chinese electric vehicles, batteries, solar cells, steel, aluminum, and medical equipment. China’s goal is to maintain low prices through high production capacity, which some argue gives them an unfair advantage in global trade.
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