Chinese industry experts strongly criticized Canadian officials on Sunday for considering high tariffs on Chinese electric vehicles (EVs) in response to similar measures imposed by the US, accusing Canada of succumbing to pressure from Washington and suggesting that any tariff increase would have minimal impact on China’s EV industry.
François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, announced that Ottawa is “considering all measures” following the US’s decision to raise tariffs on Chinese EVs and related goods. He emphasized that Canada is closely aligning its actions with those of the United States to safeguard its industry and workforce, according to a report by the Canadian Broadcasting Corp on Friday.
“It’s fair to say that everything is on the table to protect our industry and our workers,” Champagne stated. “We’re working in sync with the United States of America.”
Canadian Trade Minister Mary Ng also confirmed that Canada is evaluating whether to increase tariffs on Chinese-made EVs. “We are looking at this very carefully and we have an open dialogue with our American partners,” Bloomberg quoted Ng as saying.
However, industry experts believe that Canada’s potential tariff hikes are primarily a political gesture of loyalty to the US, rather than a substantial economic measure.
“Canada has long been a follower of the US, so raising tariffs on Chinese EVs is bowing to pressure from Washington at the expense of its domestic industry and Canadian consumers,” said Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, in an interview with the Global Times on Sunday.
Dong noted that Canada’s market for Chinese EVs is relatively small and any decision to raise tariffs would not significantly impact China’s EV industry. “I sincerely hope that Canada can maintain its independence in trade and return to a cooperative approach with China,” Dong added, suggesting that Canada should learn from the backlash it faced after the arrest of Huawei executive Meng Wanzhou at the request of the US.
Last week, Washington’s sharp tariff increases on Chinese EVs and other high-tech products drew strong criticism from Beijing, which threatened to take necessary measures to defend its legitimate rights and interests.
Amid the concerted efforts by the US and its allies to hinder China’s EV industry, the European Union has also initiated an anti-subsidy investigation into Chinese EVs. In response, China has prepared countermeasures, indicating a potential trade escalation.
Gao Lingyun, an expert at the Chinese Academy of Social Sciences, emphasized that the coordinated moves by the US, EU, and Canada reflect a concerted effort by the West to undermine China’s advanced industries. Despite these challenges, Gao believes that these actions will not halt the progress of Chinese industries.
“This appears to be a symbolic move ahead of the upcoming US general election. It is unlikely to have a substantial effect,” Gao commented to the Global Times, suggesting that even if Canada follows the US in imposing high tariffs on Chinese EVs, the impact would be minimal.
In response to increased Western protectionism against Chinese EVs and other high-tech products, some Chinese experts have advocated for higher tariffs on imported vehicles with large engines. They argue that this approach not only complies with WTO rules but also aligns with China’s goals of promoting green and low-carbon development.
The Chinese electric vehicle (EV) industry thrives due to strong government support, including subsidies and infrastructure investments, a large domestic market demand driven by environmental concerns, technological advancements in battery technology, a competitive and innovative domestic industry, ambitious global expansion plans, and strategic economic incentives for reducing dependence on fossil fuels and promoting sustainable transportation solutions.