Manitoba Premier Wab Kinew has urged Prime Minister Mark Carney to eliminate Canada’s 100% tariff on Chinese electric vehicles in exchange for China lifting its tariffs on Canadian canola and pork. Kinew emphasized the negative impact of the tariffs on Prairie producers, noting that China’s retaliatory tariffs have led to decreased canola prices and significant financial losses for a Manitoba pork producer.
The electric vehicle duty was implemented by Canada last year in alignment with the United States’ tariff on Chinese electric vehicles to safeguard the country’s automobile industry. Saskatchewan Premier Scott Moe has also expressed his desire for the removal of the electric vehicle tariff, linking it to maintaining good relations with the U.S. However, he acknowledged that eliminating the tariff is not a straightforward solution.
Kinew highlighted the importance of balancing long-term industrial goals, national security, and immediate economic realities in Canada’s trade policy. He referenced a recent statement by the Chinese ambassador to Canada, Wang Di, offering to lift tariffs on canola and pork if Canada removes the tax on Chinese electric vehicles.
The Chinese ambassador argued that the tariff on Chinese electric vehicles violates World Trade Organization rules and removing it would reinforce Canada’s commitment to a rules-based international trade order. China currently imposes significant tariffs on Canadian canola and pork products, while Ottawa has accused Beijing of unfairly subsidizing its electric vehicle industry.
Ottawa announced a review of the 100% tariffs on Chinese electric vehicles last month, without specifying a timeline for the review process. The tariffs came into effect on October 1, 2024, and were slated for a review within one year of implementation. Recent data revealed a substantial decline in Saskatchewan’s canola exports to China, indicating a 76% drop in exports compared to the same period last year.
Ontario Premier Doug Ford supported maintaining the 100% tariff on Chinese electric vehicles to safeguard Canada’s auto sector and secure a new trade deal with the U.S. Ford did not address the canola tariff in his communication with Carney. Manitoba Premier Kinew urged the Canadian government to act swiftly on the opportunity to resolve the trade dispute with China.
