China categorizes Canada's import tariffs on electric vehicles as exemplary instances of trade protectionism.
Canada's criticized China's announced retaliatory tariffs on imported electric vehicles as being protectionist. On Tuesday, China's Commerce Ministry voiced disapproval, labeling Canada's actions as unilateral and following the lead of other countries without consideration, stating, "This is classic trade protectionism." The tariffs, they claimed, disrupt the harmony of international industrial and supply chains, severely impair economic and trade connections between China and Canada, and negatively impact businesses in both nations.
Canada's Prime Minister, Justin Trudeau, declared on Monday that the nation would impose 100 percent tariffs on Chinese electric vehicles and 25 percent tariffs on Chinese-imported steel and aluminum. Trudeau alleged that China was obtaining an unjust advantage in the global market. The Deputy Prime Minister, Chrystia Freeland, expressed concern that Canada may become a dumping ground for China's excess production. Previously, the U.S. National Security Advisor, Jake Sullivan, urged Canada to implement similarly high import tariffs on Chinese electric vehicles, similar to the U.S.'s own actions.
China's Commerce Ministry charged Canada with defying World Trade Organization (WTO) regulations, a directive China strongly disagrees with. China's Foreign Ministry advised Canada to refrain from politicizing economic and trade matters. "Canada's flourishing electric vehicle sector stems from unrelenting technological progress, a robust industrial infrastructure, and cutthroat competition," stated ministry spokesperson Lin Jian.
Chinese electric vehicle manufacturers can offer cars for less than 10,700 euros. U.S. President Joe Biden attributed this to substantial Chinese government subsidies, enabling manufacturers to sell their products at a loss and gain an unlawful advantage in global trade. Chinese representatives maintain that intense production keeps prices low and aids the shift towards a sustainable economy.
Canada's actions towards imposing tariffs on Chinese electric vehicles and steel and aluminum imports can be seen as an extension of trade protectionism, aligning with the strategies of other nations. China's Commerce Ministry criticized Canada for engaging in classic trade protectionism, causing disruptions in international industrial and supply chains.
