Canada imposes a 100% tariff on Chinese-made electric vehicles

Canada Imposes Tariffs on Chinese Electric Vehicles

TORONTO — Canada announced Monday it is launching a 100% tariff on imports of Chinese-made electric vehicles, matching U.S. tariffs imposed over what Western governments say are China’s subsidies that give its industry an unfair advantage.

Background

The announcement came after encouragement by U.S. national security advisor Jake Sullivan during a meeting with Canadian Prime Minister Justin Trudeau and Cabinet ministers Sunday. Sullivan is making his first visit to Beijing on Tuesday.

Canada’s Response

Trudeau said Canada also will impose a 25% tariff on Chinese steel and aluminum. “Actors like China have chosen to give themselves an unfair advantage in the global marketplace,” he said.

Impact on Tesla and Chinese Brands

One of the Chinese-made EVs imported into Canada is from Tesla, made at the company’s Shanghai factory, though the U.S. company could avoid the tariff by switching to supplying Canada from factories in the U.S. or Germany. Chinese brands are not yet a player in Canada. However, Chinese EV giant BYD established a Canadian corporate entity last spring and has indicated it intends to try and enter the Canadian market as early as next year.

Chinese Concerns and U.S. Tariffs

Chinese officials are likely to raise concerns about the American tariffs with Sullivan as Beijing continues to repair its economy after the COVID-19 pandemic. U.S. President Joe Biden in May slapped major new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment.

International Cooperation

“The U.S. does believe that a united front, a coordinated approach on these issues benefits all of us,” Sullivan told reporters on Sunday. Biden has said Chinese government subsidies for EVs and other consumer goods ensure that Chinese companies don’t have to turn a profit, giving them an unfair advantage in global trade.

China’s Argument and Canada’s Stand

Chinese firms can sell EVs for as little as $12,000. China’s solar cell plants and steel and aluminum mills have enough capacity to meet much of the world’s demand. Chinese officials argue their production keeps prices low and would aid a transition to the green economy. Trudeau said of the new tariffs, “We’re doing it in alignment, in parallel, with other economies around the world that recognize that this is a challenge that we are all facing. Unless we all want to get to a race to the bottom, we have to stand up.”

Possible Future Tariffs

Deputy Prime Minister Chrystia Freeland said Canada also will launch a 30-day consultation about possible tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals and solar panels. “China has an intentional state-directed policy of overcapacity and oversupply designed to cripple our own industry,” Freeland said. “We simply will not allow that to happen to our EV sector, which has shown such promise.”

Chinese Response and Potential Retaliation

The Chinese Embassy said Ottawa disregarded Beijing’s repeated objections and said the move will damage trade and economic cooperation. “This move is typical trade protectionism and politically-motivated decision, which violates the World Trade Organization(WTO) rules and goes against Canada’s traditional image as a global champion for free trade and climate change mitigation,” the embassy said in an emailed statement. “China will take all necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.” Canada “had to go with the U.S. position, when you think about the economic integration that we have with the U.S. More than 75% of our exports go to the U.S.,” said a former Canadian ambassador to China, Guy Saint-Jacques. Saint-Jacques said Canada can expect retaliation from China in other industries, adding that barley and pork are candidates because the Chinese can get it from other countries. “China will want to send a message,” he said.

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This story has been corrected to say Tesla is one of the Chinese-made EVs imported into Canada, not the only one.

SDGs, Targets, and Indicators Analysis

1. SDGs Addressed or Connected to the Issues Highlighted in the Article

• SDG 9: Industry, Innovation, and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

The issues highlighted in the article are related to unfair trade practices, specifically China’s subsidies for its electric vehicle (EV) industry. These issues are connected to several SDGs. SDG 9 focuses on promoting sustainable industrialization and fostering innovation, which is relevant to the article as it discusses China’s subsidies that give its industry an unfair advantage. SDG 12 emphasizes responsible consumption and production, which is relevant as the article discusses the need to address unfair advantages in the global marketplace. SDG 13 addresses climate action, which is relevant as the article mentions the potential impact of Chinese production on the transition to a green economy. Finally, SDG 17 highlights the importance of partnerships for achieving the goals, which is relevant as the article mentions the coordination between the US and Canada in imposing tariffs on Chinese imports.

2. Specific Targets Under the Identified SDGs

• SDG 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product in line with national circumstances
• SDG 12.2: By 2030, achieve the sustainable management and efficient use of natural resources
• SDG 13.2: Integrate climate change measures into national policies, strategies, and planning
• SDG 17.14: Enhance policy coherence for sustainable development

Based on the issues discussed in the article, the following specific targets can be identified. Under SDG 9, the target is to promote inclusive and sustainable industrialization and raise industry’s share of employment and GDP. Under SDG 12, the target is to achieve sustainable management and efficient use of natural resources. Under SDG 13, the target is to integrate climate change measures into national policies. Under SDG 17, the target is to enhance policy coherence for sustainable development.

3. Indicators to Measure Progress Towards the Identified Targets

• Percentage increase in employment and GDP in the industrial sector
• Resource productivity (GDP per unit of material consumption)
• Integration of climate change measures in national policies and strategies
• Level of policy coherence for sustainable development

The article does not explicitly mention indicators to measure progress towards the identified targets. However, the following indicators can be used based on the general context of the issues discussed. The first indicator is the percentage increase in employment and GDP in the industrial sector, which can measure progress towards the target under SDG 9. The second indicator is resource productivity, which can measure progress towards the target under SDG 12. The third indicator is the integration of climate change measures in national policies and strategies, which can measure progress towards the target under SDG 13. The fourth indicator is the level of policy coherence for sustainable development, which can measure progress towards the target under SDG 17.

4. Table: SDGs, Targets, and Indicators

Source: abcnews.go.com