Canada Urged to Hike Tariffs on Chinese EVs: Here’s Why

Canadian lawmakers are facing mounting pressure from auto manufacturers, steel producers, and union officials to significantly increase tariffs on Chinese imports, reports Bloomberg. The push comes after US President Joe Biden announced substantial tariff hikes on Chinese goods, including a fourfold increase on Chinese electric vehicles.

Why the Push for Higher Tariffs?

Canadian industries warn that maintaining low tariffs on Chinese goods could harm the ‘s economic stance and strain its relationship with the US. Currently, imposes a modest 6% tariff on Chinese vehicles, starkly lower than the new US rate of 102.5%.

Industry Concerns

Auto manufacturers and steel producers argue that the current low tariffs Canada vulnerable to a flood of over-produced Chinese goods. They fear this could undermine domestic industries and lead to job losses.

Union Officials Weigh In

Union leaders are also vocal about their concerns. They highlight the potential risks to Canadian workers if cheap Chinese imports continue to undercut local products. A union official stated, “We need to protect our industries and our jobs. Low tariffs on Chinese goods are not helping.”

US-Canada Trade Relations

The US has ramped up its protectionist measures, and Canada’s comparatively lenient stance on Chinese imports could be seen as a weak point in the North American trade alliance. This discrepancy might strain Canada-US trade relations, potentially leading to economic and political repercussions.

Biden’s Tariff Hikes

Earlier this month, President Biden announced sweeping tariff hikes on Chinese goods. The most significant increase was on Chinese electric vehicles, raising the tariff to 102.5%. This move is part of a broader strategy to protect American industries from unfair competition and to address trade imbalances with .

What’s at Stake?

For Canada, the stakes are high. Aligning its tariff policies with those of the US could help strengthen its economic partnership with its southern neighbor. Failure to do so might result in negative perceptions and potential economic fallout.

Economic Implications

Higher tariffs could protect Canadian industries from being undercut by cheaper Chinese goods, potentially saving jobs and fostering economic stability. However, there is also a risk that increased tariffs could lead to higher consumer prices.

EVXL’s Take

Increasing tariffs on Chinese goods seems like a necessary step for Canada to align with the US and protect its industries. This move could prevent job losses and bolster domestic production. However, policymakers must balance these measures to avoid significant price hikes for consumers. Aligning with the US might not only solidify trade relations but also position Canada as a strong player in the global market.

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Haye Kesteloo
Haye Kesteloo

Haye Kesteloo is the Editor in Chief and Founder of EVXL.co, where he covers all electric vehicle-related news, covering brands such as Tesla, Ford, GM, BMW, Nissan and others. He fulfills a similar role at the drone news site DroneXL.co. Haye can be reached at haye @ evxl.co or @hayekesteloo.

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