Follow U.S. lead to curb cheap imports coming from China
This article was written by Robert Benzie and Mark Ramzy, and was published in the Toronto Star on June 21, 2024.
Premier Doug Ford is urging Prime Minister Justin Trudeau to impose stiff tariffs on “artificially cheap” Chinese electric vehicles to protect Ontario’s nascent industry from being swamped.
“I’m calling on the federal government to immediately match or exceed U.S. tariffs on Chinese imports, including at least a 100 per cent tariff on Chinese electric vehicles,” Ford said Thursday.
“Taking every advantage of low labour standards and dirty energy, China is flooding the market with artificially cheap electric vehicles,” the premier said. “Unless we act fast, we risk Ontario and Canadian jobs.”
In Westville, N.S., Trudeau was noncommittal but stressed “we will continue to be there to protect Canadian workers and Canadian industry.”
“Doug Ford and I — the Ontario government and the government of Canada — have worked closely together over the past years to build one of the strongest electric vehicle manufacturing ecosystems in the world here in Canada,” the prime minister said.
“And you don’t just have to take our word for it — Bloomberg recently ranked Canada number one in the developing EV battery supply chain in the world, ahead even of China,” said Trudeau.
“We’re watching closely what the Americans and other allies have done. We actually had significant conversations about this last week when I joined together with other G7 leaders in Italy to talk about global economic issues.”
Ford’s intervention comes as pressure is mounting on Ottawa to get in line with U.S. President Joe Biden on taxing Chinese-made EVs, which can be cheaper than domestic vehicles.
While Canada currently has a six percent tariff on Chinese EVs, Ottawa gives buyers — like those who buy Teslas made in Shanghai for the Canadian market — a $5,000 rebate.
Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, who has worked closely with Trudeau and Ford on the EV strategy that is a cornerstone of Ontario industrial policy, said Canada must act.
“While the U.S. protected their market with a serious tariff, most people don’t know four out of five cars made in Canada are actually sold to Americans,” said Volpe.
“We have the moral obligation to return the favour and protect the Canadian market for U.S. imports from these Chinese Trojan horses,” he said Thursday.
Trudeau’s government appears torn between competing pressures to boost EV use to meet climatechange targets and the need to protect Canadian jobs. Ottawa has decreed that by 2035 all new light-duty vehicles must be zero-emission.
In Ottawa, Environment Minister Steven Guilbeault said “it’s a very live discussion that we’re having with many colleagues, including (Industry) Minister (François-Philippe) Champagne and others.”
“There are trade-offs one way or the other — and we’re looking into this,” Guilbeault said Wednesday.
International Trade Minister Mary Ng emphasized “Canada and the United States have a very integrated auto supply chain.”
“We also have … a lot of really amazing Canadian auto workers, so it’s an issue that we are taking very, very seriously and I will have something to say about that very shortly,” said Ng. “For Canada, what’s really important is … trade that is underpinned by the rules of trade. Canada can’t be a backdoor for products that are unfairly traded.”
Ford pointed out that “over the last four years, Ontario has a secured $43 billion worth of investments in electric vehicle and battery manufacturing, securing hundreds of thousands of good, wellpaying jobs.”
“This has been an all-hands-ondeck achievement, working sideby-side with the federal government and our private-sector labour partners,” the premier said.
My Climate Change Website 