Canada intends to impose fees on China's export of electric and steel cars

Canada intends to compile new customs tariffs on China’s export of electric, aluminum and steel vehicles, in a step to identify with the procedures of its Western allies, and is aimed at protecting local manufacturers. The government plans to announce 100% tax on electric cars and 25% on steel and aluminum, according to people who are familiar with the matter, they spoke on the condition that they do not disclose their identity because the information is still private. Prime Minister Justin Trudeau is expected to reveal the procedure in Halifax, Nova Skosha, where he meets with the rest of his government members to hold a series of meetings on the economy and external relations. Canada, an economy powered by exports and is largely dependent on trade with the United States, has carefully monitored movements of the administration of US President Joe Biden to establish a much higher definition wall against Chinese electric vehicles, batteries, solar cells, steel and other products. The Motor Sector in Canada is largely integrated with a closer to its neighbor, as the vast majority of light vehicles, which amount to 1.5 million units last year, are exported to the United States. The role of the Minister of Finance, Cristia Freeland, the most influential figure in the Trudeau government, was one of the most prominent votes in support of a more striking approach to Chinese car exports, and a closer commercial ally with the United States. In June, Freeland announced a general consultation on possible measures to make the sale of electric cars in the Canadian market for Chinese businesses more difficult. She saw that the automotive industry “faces unfair competition from China because of the policy directed and deliberate by the state, which is the excessive production capacity that undermines the capacity of the Electric Motor Sector in Canada to compete.” In July, Freeland went on. During an interview with “Bloomberg News”, she said that customs tariff consultations could exceed electric cars. “The concept of political geography and economic geography is back,” she said, adding, “This means that Western countries, especially the United States, attach great importance to safe supply chains and take another position against the surplus of Chinese production.” ‘Not an illusion’, the European Union has announced proposals to set up new customs duties on electric cars imported from China, but at lower levels than the United States and Canada currently suggest. The SAIC car products have additional fees by 36.3%, while ‘Geely’ and ‘Towd’ company faces the customs duties of 19.3%and 17%respectively, according to a decision issued last week. Tesla will see additional fees with 9% on vehicles made in China. Chinese leaders are planning to discuss the issue of customs duties during the visit of US National Security Advisor Jake Sullivan this week, according to official news agency Xinhua. Sullivan is scheduled to meet Chinese Foreign Minister Wang Yi and can also meet Chinese President Xi Jinping. China policy has responded to Canada before. The country previously limited the Canola Seeds for three years, a step seen as a revenge for the Canadian authorities’ decision to arrest the executive director of Huawei Mix and Anzhou in Vancouver under an American handover letter. Mix returned to China in 2021. The value of Chinese electric cars imported by Canada rose to $ 2.2 billion ($ 1.6 billion) last year, from less than $ 100 million in 2022, according to the Canadian Statistics Authority data. The number of cars coming from China to Vancouver Port has increased after Tesla ‘Model Wi -‘ cars began to charge his factory in Shanghai. However, the Canadian government is not ‘Tesla’, but rather the possibility of cheap cars manufactured by Chinese car businesses in the end. The Canadian government ate informed the Canadian government in July that it intends to push lawmakers and officials over his plans to enter the country. The protection of the local industry faced political and industrial pressure. The Canadian car sector has pointed out to increase the rates to protect local work and wages, on the pretext that Chinese electric cars are cheaper due to the criteria for much weaker work. The government also has dramatically on the car businesses and the Allied car businesses, because it has agreed to support billions of dollars for electric car factories or batteries for ‘Stellantis’, ‘Volkswagen’ and ‘Honda’, among others. Canada’s steel and aluminum producers have finally requested the government to limit access to China’s products, saying that the industrial policy of Chinese president allows Asian power to indirectly shower and jeopardize local work. “China does not play according to the rules,” a president and executive director of the Canadian Steel Producers Association, Catherine Kobben, told reporters earlier this month. She added, “The government should have no illusion that it is so.”