Close X
Tuesday, November 12, 2024
ADVT 
National

Poilievre calls for tariffs on Chinese EVs, Liberals imply they're already coming

Darpan News Desk The Canadian Press, 09 Aug, 2024 01:09 PM
  • Poilievre calls for tariffs on Chinese EVs, Liberals imply they're already coming

A future Conservative government would slap massive import tariffs on Chinese-made electric vehicles and a host of other products in a bid to protect Canadian jobs, Leader Pierre Poilievre said Friday.

His promise comes as the Liberal government just completed the required consultations to impose tariffs on Chinese-made electric vehicles and launched an additional consultation Friday that could expand that to additional industries.

Poilievre made his announcement in front of a few dozen workers at the Stelco steel plant in Hamilton, with steel being one of the products he says China is trying to undermine in Canada. 

Poilievre said the Chinese government is "exploiting weak labour and environmental standards to produce artificially cheap steel, aluminum and EVs that create more pollution."

"They have stolen technology from western countries, limited access to global supply chains and have massively subsidized steel, aluminum and EV industries. They're doing this with the goal of crushing our steel, our aluminum and our automotive production and taking our jobs," he said.

His plan is to introduce a 100 per cent import tax on Chinese-made EVs and cancel Canadian EV purchase rebates for them. A 50 per cent import tariff would be added to semiconductors and solar cells, as well as 25 per cent on steel and aluminum products, graphite and other critical minerals, EV batteries, battery parts, permanent magnets and ship-to-shore cranes.

The plan mirrors the tariffs announced by U.S. President Joe Biden for his country on May 14, in a plan Biden said was meant to protect U.S. industry from unfair Chinese competition and control of supply chains that can disrupt the global economy.

The European Union also imposed higher import tariffs on Chinese EVs this summer, bringing the maximum import tax to almost 50 per cent. On Friday Beijing filed a complaint at the World Trade Organization over it. China promised in May to respond strongly to the U.S. tariffs but hasn't yet announced any retaliatory measures.

Poilievre accused Prime Minister Justin Trudeau of refusing to follow the U.S. lead.

"Meanwhile, Trudeau has done nothing to protect our workers and our jobs," he said. "Worse than that, this is where it gets really crazy, he's giving out rebates for people to buy Chinese made cars."

Canada has a national rebate of up to $5,000 on the purchase of EVs that do not restrict the country of origin. Currently the only EVs made in China that are sold in Canada are Teslas made at the U.S. tech giant's Shanghai factory.

Canada's Teslas came from the U.S. until recently, but switched some production to Shanghai because the U.S. is offering EV tax credits that are limited to vehicles made in North America.

However in April China's biggest EV company, BYD, registered as a Canadian corporate entity and in July, registered Canadian lobbyists to talk to the Canadian government about BYD's planned entry into the Canadian market and Canadian tariffs on EVs.

Canada currently applies a six-per cent import tariff on Chinese-made passenger vehicles. But an increase seems imminent, as Canada just completed the required month-long consultation process to impose higher tariffs.

When she announced those consultations in June, Finance Minister Chrystia Freeland said Canada would "not stand for" China's clear policy to overproduce and oversupply EVs and EV-related products.

On Friday her spokeswoman said Freeland "has been clear that action is necessary" and accused Poilievre of harming Canada's industries by delaying the passage of the government's new investment tax credits to help the auto sector and other clean tech industries.

"It is incredibly rich for Pierre Poilievre to attempt to repackage the government’s position that action is necessary to protect Canadian auto workers from unfair Chinese trade practices in electric vehicles and claim it as his own," Katherine Cuplinskas said.

Several hundred submissions were made during the consultation, which ran from July 2 to Aug. 1, and Freeland met personally with representatives from labour groups, as well as the steel, aluminum, critical minerals and auto industries.

Most industry groups welcome the notion of new tariffs while some environment advocates say they will delay the expansion of electric vehicles in Canada by keeping lower-cost cars out of the market.

The new tariffs would be applied under section 53 of the Customs Tariff Act, which allows for imposition of a surtax on imported goods in response to practices that adversely affect Canada's industry.

Canada has invested heavily in its auto sector to become a key player in the global transition to electric cars, with the federal and provincial governments offering $53 billion in tax credits, production subsidies and capital grants to 13 different EV plants, battery factories and battery precursor production sites over the last four years.

That effort propelled Canada to surpass China this year for the top spot on Bloomberg NEF's annual ranking of the potential of countries in the lithium-ion battery supply chain.

The Liberals may also be moving to look at tariffs beyond EVs as well. On Friday International Trade Minister Mary Ng launched a 45-day consultation period on "potential new measures to advance and defend Canada's economic security interests."

That consultation mentions supply chain disruptions, rising protectionism and unfair trade practices, but doesn't mention any specific industries or products that may be targeted or what mechanisms may be used. The new consultation period will end Sept. 23.

MORE National ARTICLES

''Tactical evacuations' as B.C. Interior wildfire grows: minister

''Tactical evacuations' as B.C. Interior wildfire grows: minister
British Columbia's minister for emergency management says "tactical evacuations" have been carried out in the Thompson-Nicola area of the province's Interior, where an out-of-control wildfire is threatening communities. Bowinn Ma told a news briefing in Kamloops that the Shetland Creek fire grew "quickly and considerably last night."

''Tactical evacuations' as B.C. Interior wildfire grows: minister

Door to door pranks in Surrey

Door to door pranks in Surrey
Mounties in Surrey are investigating door-knock pranks after multiple residences were damaged. Police say a decades-old prank known as Nicky nicky nine doors, has devolved into cases of harassment and mischief as an ongoing frenzy of pranks takes place in the neighbourhoods of Newton and South Surrey.

Door to door pranks in Surrey

27 heat records broken for BC

27 heat records broken for BC
Environment Canada says B-C broke or tied at least 27 daily heat records Wednesday. Lytton in the Fraser Canyon was the hottest spot in the province at 42 degrees, shattering the 2009 record of 35.3 degrees. 

27 heat records broken for BC

Years after Insite ruling, drug policy landscape is still being shaped in B.C.

Years after Insite ruling, drug policy landscape is still being shaped in B.C.
In 2021, the Vancouver-based Drug User Liberation Front approached Health Canada with a proposal. Health Canada rejected the application for exemption from drug laws, saying DULF's plan presented too many public health and safety risks — but the group went ahead with it anyway, saying it would save lives.

Years after Insite ruling, drug policy landscape is still being shaped in B.C.

Canada's premiers say Ottawa must meet NATO spending target to keep U.S.'s respect

Canada's premiers say Ottawa must meet NATO spending target to keep U.S.'s respect
At the closing news conference of the Council of the Federation meetings in Halifax, multiple premiers highlighted the importance of Canada's NATO commitment to spend at least two per cent of GDP on defence.

Canada's premiers say Ottawa must meet NATO spending target to keep U.S.'s respect

Western Canada sweats in renewed heat wave, rivergoers told to avoid cheap floaties

Western Canada sweats in renewed heat wave, rivergoers told to avoid cheap floaties
Henke said most of the 50 calls the department has responded to so far this month have been to rescue people stranded on the Bow River, because they didn’t have the appropriate gear to float. Henke said crews will increase their presence along the river to educate people on the types of tubes and rafts that float safely on the water.

Western Canada sweats in renewed heat wave, rivergoers told to avoid cheap floaties