Canada: Applying additional 100% duties on China’s electric cars

The imposition of an additional 100% on imported cars from October 2024 announced by Canada, arguing that this country engages in “unfair competition”, a development that angered Beijing, which did not hide its “intense dissatisfaction”. “China does not comply with the same rules as other countries,” Canadian Prime Minister Justin Tridot argued yesterday (26.8.2024) during a press conference in Halifax. Ottawa will also proceed with the imposition of additional duties 25% on imports from China of steel and imported aluminium from 15 October. In the face of the ‘challenge’ raised by Chinese industries, which in itself apply ‘unfair competition’ policy, contrary to the rules ‘market’, the Canadian government takes action, in ‘coordination with other economies of the world’, continued Prime Minister Tridot. The additional duties are targeted for private use cars, trucks, buses with electric motors, goods delivery vans, as well as hybrid models. “We must defend Canada’s jobs and interests,” Justin Trido insisted. China “expresses its intense dissatisfaction” and “her decisive opposition” to these decisions, it is highlighted in a communication released today (27.8.2024) by the country’s embassy in Canada. The text adds that Beijing will take “all necessary measures” to protect Chinese businesses. The new escalation of tension between China and Canada is recorded on the background of increasing trade conflicts with western states, which accuse Beijing of having been set to destroy competition in these and other related sectors, such as wind power, photovoltaic frameworks, batteries, etc. Last week, the EU confirmed that it meant to apply, in principle for five years, additional tariffs on electric cars imported from China. Brussels argued that Chinese electric vehicles have artificially low prices due to state subsidies, which distorts competition and affects the competitiveness of European car manufacturers. The additional duties, which may reach up to 36%, will replace the provisional duties decided at the beginning of July. Beijing has repeatedly threatened to go into retaliation. He began conducting an investigation into EU trade practices, which he has in turn equated with unfair competition, focusing on imported European dairy. Determined, too, to brake the Chinese advance in the electric car sector, the US also announced the quadruple of tariffs (from 25 to 100%) for imported Chinese electric cars. Economic competition with China is also at the heart of the American campaign. Tens of pioneer Chinese companies have appeared in recent years in the field of electricity, competing hard with foreign manufacturers, who find it difficult to adapt to new data. Canada has made considerable efforts in recent years to attract electric car manufacturers, particularly by giving tax incentives, by proclaiming the net energy produced and the resources available to the country in terms of rare earths. Source: RES-AE