China Slams Canada's 100% Tariffs On Chinese EVs After Trudeau Administration Follows In The Footsteps Of US And EU: 'Typical Trade Protectionism'

The Chinese Embassy in Canada has voiced strong objections to Canada’s decision to impose a 100% tariff on Chinese electric vehicles. The embassy has rejected Canada’s claims of “overcapacity” in China’s electric vehicle industry, describing them as “groundless.”

What Happened: The Chinese Embassy’s spokesperson labeled the move as trade protectionism and political dominance, stating it disregards WTO rules. They argued it contradicts Canada’s stance on global free trade and climate change advocacy.

China warned that this tariff would harm economic cooperation between the two nations and negatively impact Canadian consumers and businesses. They also emphasized that it would hinder Canada’s green transformation efforts.

China highlighted that its EV industry’s growth is driven by technological innovation and market competition, not subsidies.

“China urges Canada to respect objective facts, abide by WTO rules, immediately correct its wrong practices and not politicize economic and trade issues. China will take all necessary measures to safeguard the legitimate rights and interests of Chinese companies,” said the Chinese Embassy in Canada’s spokesperson in a statement.

The spokesperson also termed the move as “typical trade protectionism,” adding that it is a “politically-motivated decision.”

See Also: Tesla’s Optimus On Display At Beijing Robot Conference: Chinese Robotics Industry Gains Momentum With New Innovations

Why It Matters: This latest development follows a series of trade tensions between China and Western nations. Last week, China criticized the European Union’s tariffs on EV imports, calling them “unfair” and vowing to protect its EV industry. The EU had decided to cut duties on several major electric automakers, including Tesla Inc., which sparked China’s discontent.

Earlier in July, Chinese EV makers began exploring new markets like Africa, in response to increased tariffs from the EU and the U.S.. This strategic pivot highlights the broader impact of protectionist policies on global trade dynamics.

Furthermore, a study by AlixPartners revealed that foreign automakers are struggling to compete in China’s booming EV market, which accounts for over 40% of new passenger cars sold in the country. This underscores the competitive edge Chinese EV manufacturers hold, despite facing tariff hikes abroad.

The Biden administration quadrupled tariffs on Chinese EVs in May – while EVs would attract 100% tariffs, EV batteries would be hit by a 25% tariff. However, in July, the U.S. Trade Representative’s office said that it would take more time to review the comments it has received from the public.

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Photo courtesy: Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote