Justin Trudeau, the prime minister of Canada, announced a 100 percent tax on Chinese-made electric vehicles on Monday, joining the US and the European Union in imposing higher tasks.
The decision was made in response to what Canada described as Foreign company propaganda.
What the Canadian Prime Minister said
” Players like China have chosen to give themselves an unfair advantage in the world marketplace”, Trudeau said at a cabinet meeting in Halifax, Nova Scotia.
According to Trudeau, Ottawa is also going to impose a 25 % tax on imported steel and aluminum from China. Following a 30-day people hearing on Chinese electric vehicles and related items, the taxes are imposed.
Trudeau remarked,” I think we all realize that China does not play by the same standards.”
He said,” What’s important about this is that we’re doing it in sync with different markets around the world” and that’s true.
Ottawa has been under pressure internally to act against China in an effort to place Canada as a crucial part of the global energy vehicle supply chain. Canada has signed billion-dollar deals with Western automakers across the supply chain to boost its production heartland.
China answers with” strong discontent.”
The 100 per cent tax on Chinese cars was met with” solid discontent” by Beijing’s ambassador.
” This walk is usual trade protectionism and politically motivated choice”, a spokesperson said in a speech on the embassy’s website. It will harm China and Canada’s trade and economic cooperation, hurt American consumers and businesses ‘ interests, and stymie Canada’s clean transition process, “in addition to that.”
Response to the “extraordinary risk”
Both the US and EU in recent months imposed tariffs on Chinese Batteries of 100 per cent and 38 per cent, both. At a press conference in Halifax on the Atlantic coast of Canada, Trudeau stated that overproduction of Chinese electric vehicles and significant state subsidies for the automobile industry “require us to take action.”
” Unless we want to get in a competition to the bottom, we have to stand up, and that’s what we’re doing”, he said. The tariffs were billed as a reaction to” this extraordinary risk” by the state.
Beijing has threatened extensive reprisal against the obligations Brussels has imposed, which could have a particularly bad impact on Germany.
Germany, for which China is a significant business, abstained in a vote by EU member states in July to impose the temporary tariffs on Chinese cars. European automakers, which sold a second of their goods in China last year, are particularly concerned about any decline.
Berlin is attempting to reach a compromise that would allow the initial tariffs to be lifted.
