A worker is pictured with electric car batteries at a factory, Xinwangda Electric Vehicle Battery Co. Ltd., which makes lithium batteries for electric cars and other uses, in Nanjing in China’s eastern Jiangsu Province, on March 12, 2021. STR/AFP via Getty Images
Conservative and NDP MPs have asked for the House trade committee to immediately reconvene to discuss the economic consequences of Canada not placing tariffs on Chinese steel, aluminum, and electric vehicles (EVs)
“Canadian steel, aluminum mining, auto manufacturing jobs are at risk, and workers across the country will lose their jobs if Beijing is allowed to continue dumping products into the Canadian market with no economic consequences,” says the Aug. 12 letter signed by Conservative and NDP MPs.
“To solve this problem and protect our workers and their paychecks, the Liberal government must immediately apply tariffs on made-in-China EVs, steel, aluminum, critical minerals and other products.”
The letter calls for the committee to question Finance Minister Chrystia Freeland and International Trade Minister Mary Ngo on the “scale of job losses” that will occur across Canada’s manufacturing sector if tariffs are not put on China. It also asks the committee to prepare a report for the House of Commons that outlines the proposed tariffs on Chinese-made EVs.
According to the MPs, a failure of the federal government to apply tariffs on Chinese products is a “complete betrayal of Canadian workers,” who are unable to compete against a “regime who exploits their weak labour and environmental standards.”
Bloc Quebecois MPs did not sign the letter, with leader Yves-François Blanchet telling reporters on Aug. 15 that while the party is “not hostile at all” to the idea of tariffs on Chinese goods, “a negotiation is always preferable to a tariff.”
On Aug. 9, Conservative Leader Pierre Poilievre pledged to put tariffs on numerous Chinese products if elected prime minister. He said his government would implement a 100 percent tariff on Chinese-made EVs, a 50 percent tariff on semiconductors and solar cells, and a 25 percent tariff on steel and aluminum products, graphite, EV batteries, battery parts, permanent magnets, and ship-to-shore cranes.
Poilievre noted that while the United States had put tariffs on Chinese exports in 2018, Canada has not done the same. In May, the United States also announced it would put tariffs on 387 Chinese products, including 289 different steel and aluminum imports. The tariff rates for these products will increase to 25 percent in 2024.
The Canadian government recently finished a 30-day public consultation to gather feedback on imposing tariffs on Chinese EVs. The federal government has accused Beijing of intentionally flooding the global market with EVs to undermine Western competitors. Deputy Prime Minister Chrystia Freeland last month criticized what she called the country’s “Leninist” economic policies.
When Prime Minister Justin Trudeau was asked on Aug. 12 about Poilievre’s call to put tariffs on China, he said his government had been discussing the issue and working with stakeholders and community groups for “many months.” Trudeau said the Liberals would “continue to stand up for Canadian workers in the auto sector” and “continue to make sure that we’re using all necessary tools to drive a greener, cleaner economy, which means great manufacturing jobs here in Canada.”
Ontario Premier Doug Ford also called in June for Ottawa to put a 100 percent tariff on Chinese EVs, saying Beijing’s imports are harming Canadian jobs. He said that China is taking advantage of its own “low labour standards and dirty energy,” to flood international vehicle markets with cheap vehicles.