China calls Canadian tariffs on electric vehicles 'protectionism'

'Canada claims it supports free trade and the multilateral trading system based on (World Trade Organization) rules, but it blatantly violated WTO rules and announced it will take unilateral tariff measures by blindly following individual countries. It is typical trade protectionism,' said a statement from the Chinese Commerce Ministry.

China calls Canadian tariffs on electric vehicles 'protectionism'
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The Chinese Communist Party is accusing Canada of protectionism following Prime Minister Justin Trudeau's announcement of tariffs on electric vehicles, steel and aluminum.

On Monday, the prime minister declared Canada will put a 100% tariff on Chinese electric vehicles and a 25% tariff on Chinese steel and aluminum. The day prior, Trudeau had met with U.S. national security adviser Jake Sullivan, who encouraged the Liberals to impose the tariffs, the Associated Press reports.

“China is strongly dissatisfied and firmly opposes this,” said a statement from the Chinese Commerce Ministry. “Canada claims it supports free trade and the multilateral trading system based on (World Trade Organization) rules, but it blatantly violated WTO rules and announced it will take unilateral tariff measures by blindly following individual countries. It is typical trade protectionism.”

In May, the U.S. imposed stiff new tariffs on China, affecting $18 billion in goods. 

“The increases will apply to imported steel and aluminum, legacy semiconductors, electric vehicles, battery components, critical minerals, solar cells, cranes and medical products. The new tariff rates – which range from 100% on electric vehicles, to 50% for solar components, to 25% for all other sectors – will take place over the next two years,” CNN reported at the time.

Earlier in August, Conservative Leader Pierre Poilievre accused China of using subsidies and lax environmental and labour standards to produce “artificially cheap steel, aluminum and EVs.”

“They're doing this with the goal of crushing our steel, our aluminum, and our automotive production, and taking our jobs away,” he said during a rally at a steel plant in Hamilton, Ontario.

"It's a bit of a joke that Poilievre is suddenly talking about workers in the auto industry. He has said repeatedly that he wouldn't be making these investments in our auto industry. He'd be cutting our investments in EVs," Trudeau said.

A few weeks later, the Liberals would be following through on much of what the Conservatives and industry leaders had been calling for. 

In addition to the tariffs on electric vehicles, steel and aluminum, Deputy Prime Minister Chrystia Freeland said the Liberals would also launch a 30-day consultation process regarding potential tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals and solar panels.

“China has an intentional state-directed policy of overcapacity and oversupply designed to cripple our own industry,” she said. “We simply will not allow that to happen to our EV sector, which has shown such promise.”

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