In Winnipeg on Tuesday, Federal Agriculture Minister Heath MacDonald expressed the need to carefully consider the broader impacts on various sectors before making any decisions regarding the reduction of tariffs on Chinese electric vehicles. Last year, Canada imposed a 100 percent tariff on Chinese electric vehicles in line with the United States and committed to reviewing the measure within 12 months. In response, China retaliated by imposing tariffs on Canadian canola, adversely affecting Canadian producers.
While in China, Saskatchewan Premier Scott Moe and Alberta Premier Danielle Smith have urged Ottawa to lift the tariffs. When asked about the possibility, MacDonald mentioned that it is under consideration but emphasized the importance of taking into account other trade concerns. He stressed the need to avoid jeopardizing any industry or sector with speculative decisions.
Manitoba Agriculture Minister Ron Kostyshyn emphasized the importance of consulting all provinces before making any changes to the electric vehicle tariffs. MacDonald also mentioned that he had not yet been briefed on the Canadian delegation to China, where Kody Blois, parliamentary secretary to the prime minister, accompanied Premier Moe on the trade trip.
During a visit to Manitoba, federal and provincial ministers toured farms and heard from canola producers who highlighted the negative impact of the tariffs on their industry. The canola sector is significant, representing 200,000 jobs and contributing $43 billion to the economy, as per the Canadian Chamber of Commerce.
Prime Minister Mark Carney recently announced trade-related measures, including a $370-million production incentive for the canola sector to mitigate the effects of the Chinese tariffs. However, the Canadian Canola Growers Association expressed dissatisfaction, stating that the package does not adequately address the challenges faced by exporters and processors.
MacDonald reiterated the shared goal of reopening the Chinese market and mentioned that additional support may be forthcoming. He emphasized that the current measures are not final and further assistance could be provided in the future.
The ministers discussed challenges and solutions for Canada’s canola producers during a conference in Winnipeg, addressing the detrimental impact of the tariffs imposed by China.
