Canadian Prime Minister Justin Trudeau has announced that Canada will introduce higher tariffs on Chinese-made electric vehicles (EVs) and Chinese steel, as reported by Canada-based Global News.
He made the announcement while speaking to reporters in Halifax on Monday. During the Liberal cabinet retreat, Trudeau stated, “Shortly, we will be introducing a 100 per cent tariff on Chinese-made electric vehicles and a 25 per cent tariff on Chinese steel and aluminum.”
Trudeau explained that this decision was made to boost electric vehicle manufacturing in Canada. This move aligns Canada with recent US trade policy changes, according to the Global News report.
Earlier in May, US President Joe Biden announced an increase in tariffs on Chinese EVs from 25 per cent to 100 per cent this year. However, there is only one Chinese EV currently available in the US.
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In June, Canada’s Finance Minister Chrystia Freeland expressed concerns about “unfair” Chinese trade practices in the electric vehicle manufacturing sector. She announced the start of a consultation process to explore potential response measures, as reported by Global News.
Freeland had hinted at the potential restrictions being considered by the government. Currently, the only Chinese-made EVs imported into Canada are Teslas manufactured in Shanghai, according to the report.
Freeland stated, “The potential policy actions we are consulting on include a surtax on imports of Chinese EVs under Section 53 of the Customs Tariff Act, changes to which cars are eligible for the existing federal incentives for Zero Emissions Vehicle Program, and potentially broader investment restrictions in Canada.”
Earlier in May, Biden announced an increase in tariffs on Chinese imports across several strategic sectors, according to CNN.
The tariff increase covers imported steel and aluminum, legacy semiconductors, electric vehicles, battery components, critical minerals, solar cells, cranes, and medical products. The new tariff rates—100% on electric vehicles, 50% on solar components, and 25% on other sectors—will be implemented over the next two years.
Lael Brainard, director of the White House National Economic Council, commented, “China’s using the same playbook it has before to power its own growth at the expense of others.” She added, “China’s simply too big to play by its own rules.”
While announcing the new tariffs in the Rose Garden, Biden stated he seeks “fair competition with China, not conflict,” according to CNN.
He emphasized, “The fact is, American workers can out-work and out-compete anyone, as long as the competition is fair,” and noted, “For too long, it hasn’t been fair.”
(Except for the headline, this story has not been edited by Newsx staff and is published from a syndicated feed.)
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