When Prime Minister Mark Carney will meet US President Donald Trump on Tuesday, the Federal Government has only with the USA after a few turbulent months in domestic politics, but also with the second largest economy in the world.
In autumn, Canada entered the footsteps of the then US President Joe Biden in the implementation of additional 100 percent Surtax for electrical vehicles a MOVE critic produced by Chinas, that the critics are now less sensible if one takes into account the broken relationship with our southern neighbors, our climate goals and China’s Canola builders.
“It was a stupid policy, and we … followed the example by demonstrating our loyalty (to the USA),” said Jessica Green, professor of political science at the University of Toronto, who focuses on climate change and global climate policy.
“The soil has shifted … makes it even a dumb policy.”
China’s counter -tariff about Canadian rapeseed
Last May, Biden announced that he would quadruple the tariffs for electric vehicles, which were imported by China to 100 percent, including, including the semiconductor. After widespread speculation, Canada followed the example A few months later, they collect an additional 100 percent tariff in addition to the existing six percent, with both applause and criticism being drawn, depending on who they ask.
“Canada didn’t think of itself last year,” said Josipa Petunic, President and CEO of the industrial organization, the Canadian Urban Transit Research & Innovation Consortium (Cutric).
“We got away with a bit intellectually lazy on the trading front because we always assumed that we had this really positive partner next door.”
As a retribution for the EV tariffs, China hit its own 100 percent Surtax on Canadian rapeseed oil and meal as well as 25 percent on seafood and pork.
According to the Canola Council of Canada, China is currently the second largest market for Canadian RAPS exports with oil and meals in 2024 in the amount of $ 20.6 million or $ 918 million.
“We are those who are taking the main burden of the hit,” said Andre Harpe, Canola Farmer and Chairman of the Canadian Canola Growers Association.
“We have a new Canadian government that comes in … As a job one, I would very much like to see these tariffs.”
Agriculture and Agrarfood Canada announced CBC News that it supports farmers with several company risk management programs.
China imposed 100 percent tariffs for Canadian rapeseed oil and meals last month, making around 40,000 farmers and workers in the minor industry.
It is important to point out that China could have been more persistent. However, it was not taxed by the taxation of the product that the farmers on the toughest climb -Canola -Sowing, which last year exports to China at 4.9 billion dollars.
“China can put on this (seed) tariffs at any time if you want,” said Harpe.
Climate problems and EV introduction
It is not just a setback of the industries that are trapped in the middle of the tit-for act that drives the conversation. The implementation of the tariffs now questions whether Canada can meet its goal of reducing emissions by 40 percent from 2005 to 2030 to 2030.
Part of this plan was The Federal Government’s Federal Government’s sales mandatethat included a national goal of 100 percent zero emission vehicle sales in Canada by 2035.
“If you want EVS to be bought by Canadian consumers, we have to have affordable models,” said Louise Lévesque, Senior Policy Director at Electric Mobility Canada, a National Industry Association that is working on promoting electrical transport.
In view of the costs of an EV in Canada, the EVs still vary for many Canadians between almost 40,000 and 327,000 US dollars.
“We know that the Chinese vehicles could fill this gap,” said Lévesque.
At the moment, the cheapest EV is the Möwel of the Chinese car manufacturer BYD, which costs around 13,000 US dollars.
Protection of household production
Instead of dealing with China, part of the Canada plan to pass to electric vehicles and reduced emissions, billions of dollars to the promotion of a domestic industry, which has probably been neglected until recent years.
According to the office of the parliamentary budget officer, the federal government has announced a capital investment of $ 46.1 billion in the EV industry between October 2020 and April 2024.
This included a multi-billion dollar project that Honda could create An EV delivery chain in Alliston, Ont.including construction of four new production facilities.
However, the plan included the United States because the auto industry between the two nations is inextricably linked. With Trump’s tariffs, it is much less certain to grow the sector as part of this plan. This is where China comes into play.
However, the Canadian automotive sales sector is concerned about the investments of Ottawa and whether these efforts were all for free if the government would make it easier for the vehicles produced in China to go into the market.
“We absolutely cannot undermine our own industrial basis by launching these vehicles,” said Brian Kingston, President and CEO of Canadian Vehicle Manufacturer Association.
Both Pierre Poilievre and Mark Carney fought on speed crossing on the campaign path. On permits for the development of the mineral -rich fire ring In North -Montario -an important pillar of the Canadian strategy of becoming more economically independent and developing our own EV delivery chain.
But Kingston argues that EVS, which were produced in Canada, could never compete with Chinese vehicles in terms of price.
“There is a real risk that the Canadian market will be flooded with unloaded vehicles from China,” he said, pointing out that Chinese cars are subsidized with tariffs that “become pale compared to what they see in North America”.
Cooperation with China?
However, there is a world in which consumers, according to some experts, have access to more affordable electric vehicles and at the same time protect domestic production.
Niel Hiscox, President of Clarify Group Inc., an automotive research and consulting company based in Toronto, could be a point where Canada and China can work together.
He says it is particularly important for research and development.
“In Battery Technology and EVS (China) is now absolutely the world leader,” he said. “To be honest, what has to happen is a reversal of this type of joint venture technology transfer.”
According to Lévesque with Electric Mobility Canada, Canada Europe could follow with a more targeted tariff (Europe is now Negotiation of this tariff of up to 45.3 percent With Chinese EV imports) or political decision -makers could implement a time limit for them.
“It would be to give the North American industry time to … but it must be clearly determined with a dated goal and what we expect from these companies,” she said.
It also suggests that cars only be questioned for discounts in Canada.
According to Green at the University of Toronto, Canada could subsidize the industry in any way or set a minimum price to control the level of import.
Integrated, Canada’s answer to the EV question can be regarded as an indication of the approach that it will pursue in the future for economic political design, especially how Carney has The “old relationship” with the USA is repeatedly over “over“And it is unclear whether Canada can manage to develop its own industry.
The EV trade war could be the test case for a much larger series of questions, since Canada’s Prime Minister will meet its US counterpart on Tuesday.
“Will (Carney) shape your own way or get involved with this strange Hokey -Pokey dance with Trump?” said green.
