In a surprise move, Canada has announced that it will Import duty of 100% on electric cars from China. The decision comes shortly after a similar move by the USA and is causing tensions between the countries. China reacted directly and indicated that it oppose the measures The Chinese Embassy in Canada said it would take all necessary steps to protect the interests of Chinese companies. The conflict could have a major impact on trade relations between the two.
Trade war Canada & China
According to the Chinese embassy, the tariffs not only harm bilateral relations, but also the interests of Canadian consumers and businesses. The Chinese side stresses that such measures also undermine global efforts to combat the climate change And there is also criticism in Europe, because similar tariffs could lead to a departure from free trade and international cooperation. The EU recently imposed import tariffs of up to 37,6 percent on Chinese electric cars, but Canada goes much further with its 100% tariff.
Tariffs on steel and aluminium
In addition to tariffs on electric cars, Canada also plans to 25 percent tariff on Chinese steel and aluminum products. The Canadian government argues that the measures are necessary to create fair competition conditions for the domestic industry. Finance Minister Chrystia Freeland stressed that Chinese companies have an unfair advantage due to state subsidies and less stringent environmental and labor protection regulations.
Little impact on the Canadian market
Although the new tariffs theoretically have serious consequences, the immediate impact on the Canadian market is certainly small. Currently, only teslasthat are built in Shanghai are imported to Canada. Chinese brands are not yet represented on the Canadian market. In the long term, however, this could change if China takes countermeasures and the conflict escalates even further.
