- China threatens retaliatory actions against Canada in response to proposed tariffs on electric vehicles.
China is giving Canada notice of retaliatory steps over the implementation of hefty taxes on electric vehicles. As expressed by the Chinese embassy in Canada, they will implement "whatever steps needed" to safeguard the rights and well-being of their homegrown firms.
The 100% tax on Chinese electric vehicles is predicted to negatively impact the bilateral trade and economic ties between China and Canada, the statement pointed out. The Canadian administration's activities are misaligned with the interests of Canadian consumers and enterprises, and they also hinder international endeavors in tackling climate change.
There have also been tax hikes instituted by the USA and EU.
Canada's administration had previously announced a 25% tax on Chinese steel and aluminum products, and on electric vehicles, making it a total of 25% levies. Finance Minister Chrystia Freeland underlined that these policies are aimed at fostering a level playing field for the local industry. The Canadian government contends that Chinese producers gain from government-ordained excess production policies and more lenient regulations pertaining to worker and environmental protection.
In May, the USA added an additional 100% tax on electric vehicles from China. The EU Commission responded by proposing its own framework, which includes different tax ratios contingent on the manufacturer, in June.
In response to Canada's implemented 25% tax on Chinese electric vehicles, China has threatened retaliatory measures, specifically mentioning the imposition of customs duties as one of the potential steps. Furthermore, the Chinese embassy in Canada stated that they will take "whatever steps needed" to protect their domestic companies from these hefty taxes.
