China is escalating its trade dispute with Canada by taking the issue of new tariffs on electric vehicles (EVs) and steel to the World Trade Organization (WTO). The Chinese Ministry of Commerce, in a statement on Wednesday, announced that it has filed a complaint with the WTO, alleging that Canada’s tariffs are discriminatory and violate international trade principles.
The statement, which reiterates China’s opposition to the levies, criticized Canada’s actions as ‘unilateral and trade protectionist.’ The Ministry also condemned the tariffs as damaging to normal economic and trade cooperation between Chinese and Canadian companies. Specifically, the statement highlights the negative impact on China-Canada economic and trade relations and the disruption caused to global industrial and supply chains.
The Canadian government implemented a 100% tariff on EVs imported from China, which came into effect on October 1st. This includes vehicles like the Tesla Model 3 and Model Y, which are manufactured in China and imported to Canada. In addition to EVs, Canada has also introduced a 25% tariff on steel and aluminum products imported from China.
It’s important to note that Canada is not alone in imposing tariffs on Chinese EVs. Both the European Union (EU) and the United States have also proposed similar measures. The EU is considering tariffs of up to 35.3% on EVs made in China, on top of the standard 10% car import duty. The Biden administration, meanwhile, has imposed a 100% tariff on Chinese-made EVs.
China’s commerce minister has warned that these tariffs could disrupt trade and investment. He has emphasized the need for a peaceful resolution to avoid escalating tensions between China and the EU. This latest development highlights the growing trade tensions between China and its major trading partners, as countries seek to protect domestic industries and promote their own EV manufacturing sectors.
