The federal government has picked a tariff fight with China in imposing a series of heavy-handed measures against Chinese-made electric vehicles (EVs), steel and aluminum products.
Ottawa is imposing a 100 per cent surtax on all Chinese-made electric vehicles on Oct. 1. That includes cars, trucks, buses and delivery vans.
A 25 per cent surtax on imported Chinese steel and aluminum products follows on Oct. 15.
In a news release, Finance Minister Chrystia Freeland said the tariffs are designed to level the competitive playing field for Canadian industry against, what the government accuses, are unfair Chinese trade strategy and practices, and protect the jobs of 155,000 Canadians working in the EV supply chain and the metals industry.
Ottawa takes issue with poor labour standards in China, that’s country’s lack of environmental protections and its trade policy of industry overcapacity and oversupply designed to dominate global markets with Chinese products. Chinese is a national security risk, said the government. Their vehicles contain data-gathering technology that pose a privacy breach to Canadians.
"Canadian workers and critical sectors, including steel and aluminum, however, are facing an intentional, state-directed policy of overcapacity, undermining the Canada’s ability to compete in domestic and global markets,” said Freeland in a statement.
“That is why our government is moving forward with decisive action to level the playing field, protect Canadian workers, and match measures taken by key trading partners.”
The government tabulates that Chinese EV exports in 2023 amounted to $47.2 billion, up from $200 million in 2018.
That’s all good news for Unifor, the union which represents 18,000 autoworkers in Canada.
Those exact measures were what the union said it recommended to government during consultation sessions earlier.
In a release, Unifor National President Lana Payne said the livelihoods of Canadian auto and manufacturer workers must be safeguarded.
"There is no justification to trade away high-paying, high-skilled jobs for cheap high-carbon intensive vehicles build under deplorable working conditions. Our union welcomes the Canadian tariff that matches the U.S. to present a united front in support of the auto sector and the communities that benefit from it. We must all remember that cheap comes at a very high cost – a cost to good Canadian jobs and communities."
Sault Ste. Marie MP Terry Sheehan, hometown of Algoma Steel, supports his government’s move.
“The industry and unions have been asking for this, and it is a necessary step to protect our products, our jobs, and our domestic supply chains from unfair dumping and trade practices.”
An initial list of goods, subject to the surtaxes, is being released for public comment. The final list of goods will be announced Oct. 1.
The government also said it’s convening a 30-day consultation period to talk to industry on other vital sectors of the Canadian economy, specifically mentioning batteries and battery parts, semiconductors, solar products, and critical minerals. Details will be released shortly.
