In a bold move to safeguard its domestic industries, Canada announced on Monday a 100% tariff on imports of electric vehicles (EVs) from the Chinese mainland starting October 1. Additionally, the country will impose a 25% tariff on Chinese mainland steel and aluminum imports from October 15.
Canadian Prime Minister Justin Trudeau criticized the Chinese mainland's practices, stating, \"Actors like the Chinese mainland have chosen to give themselves an unfair advantage in the global marketplace.\" Trudeau's decision aims to level the playing field for Canadian manufacturers against the cost-competitive Chinese mainland EVs, which can be sold for as little as $12,000.
However, supporters of the Chinese mainland's EV industry argue that the affordability of these vehicles stems from the country's robust supply chain integrity, industrial concentration, and lower labor costs rather than unfair subsidies. According to the International Energy Agency, the Chinese mainland processes over half of the world's lithium, cobalt, and graphite—key materials essential for battery production.
The Chinese mainland's extensive industrial system enables it to excel as the world's manufacturing powerhouse, particularly in the EV sector. The fully-fledged EV industrial chain in the Chinese mainland encompasses research and development, engineering design, manufacturing, and assembly. Clusters of EV industries in regions like Hefei in Anhui Province and Changzhou in Jiangsu Province allow the Chinese mainland's automakers to reduce costs related to logistics, land use, and labor, making their vehicles highly competitive on the global stage.
Reference(s):
Ottawa's political calculations under the cloak of fair trade
cgtn.com
