Manitoba Premier Wab Kinew has urged Prime Minister Mark Carney to reconsider Canada’s 100% tariff on Chinese electric vehicles in exchange for China lifting its tariffs on Canadian canola and pork. Kinew expressed concern that the current trade approach has led to a detrimental impact on Western Canada, with plummeting canola prices and a significant financial setback for a Manitoba pork producer.
The electric vehicle duty, implemented by Canada in alignment with the United States, aims to safeguard the domestic automobile industry. However, Kinew emphasized the urgent need to address the escalating trade tensions, highlighting the adverse effects on Prairie producers.
Kinew stressed the importance of balancing long-term industrial objectives with immediate economic realities and the national duty to foster economic growth across all regions of Canada. He cited the recent offer by the Chinese ambassador to lift tariffs on canola and pork in exchange for Canada removing the tax on Chinese electric vehicles as a pivotal moment that Carney’s government should seize.
China currently imposes substantial tariffs on various Canadian agricultural products, including a 76% tariff on canola seed imports and a 100% tariff on canola oil, meal, and peas. Additionally, Chinese tariffs on certain Canadian pork, fish, and seafood products have further strained trade relations.
Ottawa has accused Beijing of unfair practices in the electric vehicle industry, prompting the imposition of 100% tariffs on Chinese electric vehicles. While Ottawa has indicated a review of the tariffs, the timeline for the review remains uncertain. The tariffs came into effect on October 1, 2024, with a regulatory commitment to review them within one year.
Recent data revealed a significant decline in Saskatchewan’s canola exports to China, emphasizing the urgency of resolving the trade dispute. Ontario Premier Doug Ford has supported maintaining the tariff on Chinese electric vehicles to safeguard Canada’s auto sector amid ongoing trade negotiations with the U.S.
The call to address the trade standoff underscores the complex interplay of economic interests and diplomatic relations between Canada and China, with stakeholders closely monitoring developments for potential resolutions.
