Finance Minister Chrystia Freeland on Monday said the federal government is prepared for any retaliation from China in a looming tariff war, per Blacklock’s Reporter. Effective October 1, Freeland is imposing a 100% tariff on Chinese-made electric vehicles and 25% on steel and aluminum. “Of course Canada needs to be ready for all manner of reactions and we are,” Freeland told reporters. “But our starting point is we have to do, and will do, what is in the national interest, what Canadians require.”The Canadian tariffs mirror similar cross-border duties imposed by the United States on May 14 and the European Union on June 12.“The reality is China has an intentional, state-directed policy of over-capacity and over-supply designed to cripple our own industry,” said Freeland.“We simply will not allow that to happen to our electric vehicle sector which is showing such promise and in which we have invested.”Cabinet has approved more than $52 billion in subsidies for Canadian electric vehicle and parts manufacturers, by Budget Office estimate.Cabinet’s announcement followed an August 21 vote by the Commons Trade Committee to investigate tariffs on Chinese exporters. “Our inaction invites further aggression from countries like China that will see our delay as weakness,” said Conservative MP Ryan Williams, sponsor of a motion for tariff hearings.A lone member of the trade committee, Liberal MP Chandra Arya, said he feared agricultural exporters will pay for any tariff war with China. “Canada is not the United States,” said Arya.“Any move to impose duties on Chinese electric vehicles will certainly result in retaliation by China. We have to be clear. Which domestic sector are we willing to throw under the bus to impose this?”“Is it the canola growers who export to China or the beef exporters or the pork exporters?” Arya asked the trade committee “Which of these Canadian exports to China are we willing to sacrifice to impose these duties on electric vehicles?”Industry Minister François-Philippe Champagne yesterday told reporters Canada had no choice but to protect its subsidized industry.“We are acting to protect our workers, to protect our industry, to protect obviously the generational investment we have seen coming in our country,” said Champagne. “In order to thrive we need to have protection.”The US on May 14 also imposed a 25% tariff on Chinese exports of critical minerals and electric vehicle batteries and 50% on semiconductors and solar cells. Prime Minister Justin Trudeau on Monday said cabinet was considering those tariffs, as well. “Actors like China have chosen to give themselves an unfair advantage in the global marketplace,” said Trudeau.“Do you believe Canada will need to go further with its tariffs?” asked a reporter. “We are looking at further measures,” replied Trudeau. “We are looking into chips, solar cells, issues like that.”
Finance Minister Chrystia Freeland on Monday said the federal government is prepared for any retaliation from China in a looming tariff war, per Blacklock’s Reporter. Effective October 1, Freeland is imposing a 100% tariff on Chinese-made electric vehicles and 25% on steel and aluminum. “Of course Canada needs to be ready for all manner of reactions and we are,” Freeland told reporters. “But our starting point is we have to do, and will do, what is in the national interest, what Canadians require.”The Canadian tariffs mirror similar cross-border duties imposed by the United States on May 14 and the European Union on June 12.“The reality is China has an intentional, state-directed policy of over-capacity and over-supply designed to cripple our own industry,” said Freeland.“We simply will not allow that to happen to our electric vehicle sector which is showing such promise and in which we have invested.”Cabinet has approved more than $52 billion in subsidies for Canadian electric vehicle and parts manufacturers, by Budget Office estimate.Cabinet’s announcement followed an August 21 vote by the Commons Trade Committee to investigate tariffs on Chinese exporters. “Our inaction invites further aggression from countries like China that will see our delay as weakness,” said Conservative MP Ryan Williams, sponsor of a motion for tariff hearings.A lone member of the trade committee, Liberal MP Chandra Arya, said he feared agricultural exporters will pay for any tariff war with China. “Canada is not the United States,” said Arya.“Any move to impose duties on Chinese electric vehicles will certainly result in retaliation by China. We have to be clear. Which domestic sector are we willing to throw under the bus to impose this?”“Is it the canola growers who export to China or the beef exporters or the pork exporters?” Arya asked the trade committee “Which of these Canadian exports to China are we willing to sacrifice to impose these duties on electric vehicles?”Industry Minister François-Philippe Champagne yesterday told reporters Canada had no choice but to protect its subsidized industry.“We are acting to protect our workers, to protect our industry, to protect obviously the generational investment we have seen coming in our country,” said Champagne. “In order to thrive we need to have protection.”The US on May 14 also imposed a 25% tariff on Chinese exports of critical minerals and electric vehicle batteries and 50% on semiconductors and solar cells. Prime Minister Justin Trudeau on Monday said cabinet was considering those tariffs, as well. “Actors like China have chosen to give themselves an unfair advantage in the global marketplace,” said Trudeau.“Do you believe Canada will need to go further with its tariffs?” asked a reporter. “We are looking at further measures,” replied Trudeau. “We are looking into chips, solar cells, issues like that.”
