Manitoba Premier Wab Kinew has urged the prime minister to eliminate Canada’s 100 percent tariff on Chinese electric vehicles in exchange for China removing its tariffs on Canadian canola and pork. In a letter to Mark Carney, Kinew expressed concern that the current trade situation has led to significant negative impacts on Western Canada.
The premier highlighted the adverse effects of China’s retaliatory tariffs, attributing a sharp decline in canola prices and a substantial financial hit to a Manitoba pork producer. The imposition of the electric vehicle duty by Canada, mirroring the United States’ tariff, was intended to safeguard the domestic automobile industry.
Saskatchewan Premier Scott Moe previously advocated for the removal of the electric vehicle tariff, conditional on maintaining favorable relations with the United States. Kinew emphasized the escalating harm to Prairie producers as long as the tariffs persist, emphasizing the need for a trade policy that balances industrial objectives with economic realities and regional growth.
Kinew referenced recent comments by the Chinese ambassador to Canada, offering to lift tariffs on canola and pork in exchange for Canada rescinding the tax on Chinese electric vehicles. This offer was seen as a pivotal moment, prompting Kinew to urge swift action from Carney’s government.
The Chinese ambassador argued that the tariff on Chinese electric vehicles violates World Trade Organization regulations, urging Canada to uphold its image as a proponent of international trade rules. Notably, China imposes significant tariffs on Canadian canola and certain pork, fish, and seafood products, while Ottawa accuses Beijing of unfair subsidies in the electric vehicle sector.
Although Ottawa announced a review of the 100 percent tariffs on Chinese electric vehicles last month, no timeline for the review process has been provided. The tariffs came into effect on October 1, 2024, with a commitment to review them within a year of implementation.
Recent data revealed a substantial decline in Saskatchewan’s canola exports to China, signaling the economic impact of the ongoing trade disputes. Ontario Premier Doug Ford supported maintaining the tariff on Chinese electric vehicles to safeguard Canada’s auto sector, without mentioning the canola tariff in his correspondence with Carney.
