Since U.S. President Joe Biden announced 100-percent tariffs (102.5 percent to be precise) on electric vehicles from China, there have been calls for similar measures from other governments.
This is the case in Europe, but also in Canada. This week, Ontario Premier Doug Ford urged Prime Minister Justin Trudeau to follow suit.
Ford said that “artificially cheap” models that benefit from Chinese government subsidies are dangerous for Ontario's auto industry as it seeks to develop an electric sector. Tens of billions of dollars in investments have been announced for Ontario by various automakers and battery manufacturers.
“I’m calling on the federal government to immediately match or exceed U.S. tariffs on Chinese imports, including at least a 100 per cent tariff on Chinese electric vehicles… Unless we act fast, we risk Ontario and Canadian jobs.”
- Ontario Premier Doug Ford
Speaking in Westville, Nova Scotia, Prime Minister Trudeau did not commit to action, but said his government would continue to "be there to protect Canadian workers and Canadian industry.”
He later added that “Doug Ford and I — the Ontario government and the government of Canada — have worked closely together over the past years to build one of the strongest electric vehicle manufacturing ecosystems in the world here in Canada.”
Trudeau confirmed that the subject has been front and centre behind the scenes, and that it was discussed at the last G7 meeting in Italy last week.
Clearly, pressure is mounting for Canada to align its policy with that of the U.S. regarding tariffs on Chinese-made electric vehicles. At present, Canada charges 6 percent on those products, in addition to granting a $5,000 rebate on the purchase of this type of vehicle, provided its base price is less than $55,000 or $65,000, depending on the category.
Canada, which has important trade relations with China, is walking on eggshells, being wary of harming other sectors with its automotive sector policies.
With the pressure mounting, we can probably expect some kind of announcement soon, one way or the other.