China accused Canada of protectionism after Prime Minister Justin Trudeau’s government imposed a 100% tariff on imports of Chinese-made electric vehicles, matching U.S. duties on Chinese EVs. The Chinese Commerce Ministry said the tariffs would disrupt global industrial and supply chains, severely impact China-Canada economic and trade ties, and damage the interests of enterprises in both countries. In a statement, it expressed strong dissatisfaction and firm opposition to Canada’s actions.
The ministry criticized Canada for violating WTO rules and engaging in typical trade protectionism despite claiming to support free trade and the multilateral trading system. It urged Canada to immediately correct its wrong practices and warned that Beijing would take necessary measures to defend the rights and interests of Chinese companies. Canada’s decision to impose tariffs came after encouragement from U.S. national security adviser Jake Sullivan during a meeting with Trudeau and Cabinet ministers. Sullivan began his first visit to Beijing on Tuesday.
Chinese officials are expected to raise concerns about American tariffs with Sullivan as Beijing continues to rebuild its economy after the COVID-19 pandemic. In May, U.S. President Joe Biden imposed major new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum, and medical equipment. A Chinese Foreign Ministry spokesperson urged Canada not to politicize economic and trade issues, highlighting China’s innovative electric vehicle industry.
Trudeau announced that Canada would also impose a 25% tariff on Chinese steel and aluminum, accusing China of giving itself an unfair advantage in the global marketplace. Despite the tariffs, Chinese EV companies like BYD are looking to enter the Canadian market, with the potential to offer affordable EVs. Chinese officials argue that their production keeps prices low and supports a transition to a green economy. Deputy Prime Minister Chrystia Freeland said Canada would consult on possible tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals, and solar panels to protect the country’s promising EV sector from China’s state-directed overcapacity policies.