Canadian Government Explores Asian Markets to Mitigate Potential Chinese Response to EV Tariffs Taking Effect Tuesday: Minister

October 1, 2024 TruthUSA

Canada’s new tariff on Chinese electric vehicles became effective on Oct. 1, in response to Beijing’s threat to ban Canadian canola. Trade Minister Mary Ng has announced that the government is now exploring shifting canola exports to Indo-Pacific markets.

A 100 percent tariff has been imposed on all Chinese-made EVs imported into Canada, including certain hybrid passenger cars, trucks, buses, and delivery vans.

Following Ottawa’s announcement of the EV tariff in August, China threatened to initiate an anti-dumping investigation into Canadian canola.

When questioned about China’s potential actions, International Trade Minister Mary Ng informed reporters that the Canadian government is working on diversifying its imports to the Indo-Pacific region to offset this vulnerability. She mentioned ongoing negotiations with Indonesia, a country with approximately 280 million inhabitants.

“We are currently in talks with that nation, as well as other ASEAN countries, and we have put significant effort into assisting Canadian businesses, including those in agriculture and farming, to access these markets,” Ng stated during an Oct. 1 press conference in Ottawa. ASEAN, or the Association of Southeast Asian Nations, comprises 10 member states.

Canada’s tariffs on Chinese EVs align with similar actions taken by the United States and the European Union, both of which have recently slapped tariffs on Chinese electric vehicles. The United States raised tariffs on Chinese EVs from 25 percent to 100 percent in August, while the EU introduced a tariff of up to 37.6 percent beginning in July.

China’s Anti-Dumping Probe

Beijing had previously prohibited Canadian canola in 2019, which was widely viewed as retaliation for Ottawa’s arrest of Huawei executive Meng Wanzhou. The three-year ban resulted in estimated losses of $1.54 billion to $2.35 billion for Canada, according to the Canola Council of Canada.

Ng dismissed China’s anti-dumping probe, stating that Canadian producers adhere to fair trade practices. She reaffirmed Canada’s decision to raise tariffs on Chinese-made EVs in opposition to Beijing’s unfair trade practices, such as state-directed overcapacity and excessive subsidization, which have negative repercussions on Canadian workers in various sectors.

China was a significant consumer of Canadian canola before the 2019 ban and continues to be so, with the Canola Council reporting that canola seed imports “returned to more normal levels” after the ban was lifted in May 2022. In the previous year, China represented nearly one-third of Canada’s total canola exports, valued at $15.8 billion, according to the council.

When questioned about Canada’s continued reliance on the Chinese canola market despite past actions by the regime, including targeting Canadian citizens during the Huawei dispute, Ng stated that Canadian businesses and producers are the ones who decide “where they sell.”

“However, we are actively collaborating with the industry to ensure there are more markets around the globe,” she added.

In addition to the EV tariff, Ottawa is preparing to impose a 25 percent tariff on Chinese steel and aluminum products, effective from Oct. 22.

The finance department, in an Oct. 1 press release, mentioned that the government intends to establish a framework for considering requests for tariff relief, giving Canadian industries time to adjust their supply chains.

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