Breaking News August 26th 5pm
Canada prepares to impose new tariffs on electric vehicleson Chinese-made aluminum and steel, aligning itself with measures taken by Western allies to protect the national supply chain. According to what he writes Bloombergthe Canadian government plans to announce a 100% rate on electric cars and 25% on steel and aluminum Chinese-made, according to sources familiar with the matter. The prime minister Justin Trudeau is expected to lift the veil on his strategy in Halifax, where he has gathered with the rest of his cabinet for a series of meetings on the economy and foreign relations.
Import Growth and Pressure on Trudeau
In the automotive sector, the value of Chinese electric vehicles imported from Canada rose to 2.2 billion Canadian dollars ($1.6 billion) last year, compared to less than C$100 million in 2022, according to data compiled by Statistics Canada. Faced with those numbers — which also increased as Shanghai-made Teslas were shipped to the Port of Vancouver — Trudeau faced a lot of political and industry pressure. The entire auto industry was calling on the Canadian prime minister to increase tariffs for protect national jobs and wages against a China that yes, offers cheaper vehicles, but at the expense of quality and lower work standards.
In this scenario, steel and aluminum producers in Canada have also publicly and repeatedly urged the government to put up barriers against Chinese products, stating that the industrial policy of Xi Jingping allows the Asian power to unfairly flood foreign markets, putting the Canadian labor market at risk. “China does not play by the rules,” according to Catherine Cobdenpresident and CEO of the Canadian Steel Producers Association. (reproduction reserved)