"Actors like China have chosen to give themselves an unfair advantage in the global marketplace," Trudeau said at a cabinet retreat. This comment reflects a growing concern among western nations about competitive inequity, stemming from China's state-supported industries, particularly in sectors like electric vehicles and steel. Canada aims to protect its domestic market by aligning its tariffs with those of its allies, ensuring that they do not fall victim to price undercutting by heavily subsidized Chinese goods.
Canada's imposition of a 100% tariff on Chinese-made electric vehicles is part of a broader strategy to combat a potential oversupply caused by China's production capabilities. Deputy Prime Minister Freeland emphasized the need for coordinated action with the U.S. and the EU to prevent Canada from becoming a surplus market for dumped goods, highlighting the interconnected nature of the North American auto sector amid rising concerns over trade fairness.
Freeland indicated that the consultations undertaken earlier in the summer were aimed at understanding the implications of Chinese oversupply in electric vehicles, suggesting a comprehensive approach to trade negotiations and tariff impositions. Trudeau's government intends to ensure that Canadian industries remain competitive and are not undermined by the pricing strategies that Chinese companies can employ due to government subsidies.
As President Biden pointed out, the Chinese government’s subsidies allow their EV companies to sell cars significantly below market value, which distorts competition. This has prompted allied nations, including the U.S. and now Canada, to adopt similar tariffs to mitigate the impact of such unfair trade practices, asserting a collective stand in global economic policies.
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