Manitoba Premier Wab Kinew has urged Prime Minister Mark Carney to eliminate Canada’s 100 percent tariff on Chinese electric vehicles in exchange for China lifting its tariffs on Canadian canola and pork. Kinew emphasized the negative impact of the current trade situation on Western Canada, citing significant drops in canola prices and financial losses for a Manitoba pork producer due to China’s retaliatory tariffs.
The electric vehicle duty, imposed by Canada last year in alignment with the United States, aims to safeguard the country’s automobile industry. However, Kinew stressed that maintaining these tariffs is deepening the economic woes of Prairie producers daily. He highlighted the need for Canada’s trade policy to strike a balance between long-term industrial objectives, national security, immediate economic circumstances, and the responsibility to foster all regions of the Canadian economy.
The Chinese ambassador to Canada, Wang Di, offered to lift tariffs on Canadian canola and pork if Canada removes the tax on Chinese electric vehicles. Kinew called this a “critical moment” and urged Carney’s government to seize the opportunity. According to a report by CTV, Wang Di stated that the tariff on Chinese-made electric vehicles violates World Trade Organization rules and removing it would strengthen Canada’s advocacy for a rules-based international trade order.
China currently imposes a 76 percent tariff on Canadian canola seed imports and a 100 percent tariff on canola oil, meal, and peas. Additionally, certain Canadian pork, fish, and seafood products face a 25 percent tariff from China. Ottawa has accused China of unfairly subsidizing its electric vehicle industry and flooding global markets with inexpensive vehicles for a competitive edge.
While Ottawa announced a review of the 100 percent tariffs on Chinese electric vehicles last month, no timeline for the review has been disclosed since it took effect on October 1, 2024. Saskatchewan’s canola exports to China have plummeted, with August data showing a 76 percent decline in exports compared to the previous year. Ontario Premier Doug Ford has supported maintaining the tariffs on Chinese electric vehicles to safeguard Canada’s auto sector amid ongoing trade negotiations with the U.S.
The situation remains complex, with various stakeholders pushing for different outcomes to resolve the trade disputes between Canada and China.