Canada Considers Tariffs on Chinese Electric Vehicles Amid Supply Chain Concerns

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Deputy Prime Minister Chrystia Freeland announced that Canada is contemplating imposing import tariffs on Chinese-made electric vehicles (EVs), citing concerns over unfair competition stemming from China’s alleged state-directed policy of overcapacity. Freeland stated that Ottawa will initiate a 30-day public consultation period starting July 2 to gather feedback on potential responses.

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Freeland emphasized that Chinese producers are deliberately creating global oversupply, undercutting EV manufacturers worldwide, including in Canada. She underscored that public consultations will guide Ottawa in formulating its policy, which may include tariffs on imports, aligning Canada’s stance with actions taken by allies in Washington and Brussels.

The proposal follows recent moves by the United States and the European Union to increase tariffs on various Chinese imports, including EVs. President Joe Biden’s administration implemented significant tariff hikes, while the European Commission plans additional duties on manufacturers such as BYD, Geely, SAIC, and Chinese-built Tesla and BMW cars.

China has refuted allegations of unfair subsidies or overcapacity issues, attributing the growth of its EV industry to technological advantages and robust market and supply chain infrastructure.

Prime Minister Justin Trudeau’s government, aiming to bolster Canada’s position in the global EV supply chain, faces domestic pressure to act decisively against Chinese EV imports. Ontario’s premier has advocated for tariffs to protect local jobs in Canada’s automotive hub.

Freeland declined to specify potential actions beyond tariffs, indicating that all options are under consideration, including measures targeting EV components like batteries. She affirmed Canada’s commitment to deploying robust trade tools to address economic challenges effectively.

Canada has secured substantial investment agreements to attract EV supply chain companies, enhancing Ontario’s manufacturing sector, a cornerstone of Canada’s economic strategy.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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