China’s commerce ministry on Wednesday said that it has asked the World Trade Organisation (WTO) to rule on Canada’s imposition of heightened tariffs on electric vehicles and steel from China.
What Happened: “China has raised a lawsuit to the WTO over Canada’s unilateral and trade protectionist measures, and will conduct anti-discriminatory probe into these restrictive measures,” the Ministry of Commerce spokesperson said while also reiterating their firm opposition to the levies introduced.
“Canada’s actions violate the principles of market economy and fair competition, seriously damage the normal economic and trade cooperation between Chinese and Canadian companies, severely impact China-Canada economic and trade relations, and disrupt and distort the global industrial chain and supply chain,” the spokesperson added.
The additional 100% tariffs announced by Canada on EVs imported from China took effect on Oct. 1. The tariffs also apply to Tesla Model 3 and Model Y vehicles made in China and imported to Canada.
The country has also announced additional 25% tariffs on steel and aluminum products imported from China.
Why It Matters: The EU and the U.S. have also likewise proposed heightened tariffs on EV imports from China.
EU is proposing tariffs up to 35.3% on EVs made in China in addition to the standard 10% car import duty. China’s commerce minister warned that these tariffs would disrupt trade and investment, stressing the need to find an amicable solution to avoid escalation of tensions between China and the EU.
The Biden administration has slapped a 100% tariff on Chinese-made EVs.
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