The Canadian Trade War with the United States has some economists who think whether the federal government should reduce or raise a 100 percent tariff on Chinese electric cars, a step some say it may stimulate EV purchases and a blow to Elon Musk Tesla.
However, car manufacturers say that customs tariffs are very important to protect the emerging EV industry in this country.
Canada followed the United States in Definitions on the Chinese EVS Last fall, with a 25 percent magic tax on imports of steel and aluminum products from China.
That was before Donald Trump became an American president and hit Canada with a The storm of definitionsIncluding steel and aluminum used in the manufacture of vehicles.
Public opinion has also been strained On Trump Adviser and billionaire billionaire technology, which Teslas is the best -selling EVS in Canada. The politicians have thought about the targeted actions against Tesla, with the leader of the National Democratic Party Jagmeet Singh And the former liberal leadership candidate Craysta Freeland Both play 100 percent of customs tariffs on vehicles.
Julian Karagosan, an economist and lecturer at McGill University in Montreal, said it is time to rethink the definitions of China.
“I am thinking quietly, we are thinking about alleviating some of these measures. I really think we should,” he said.
“If we want to have a targeted response to the Trump administration in the greatest financial supporter, we will not get to know the Tesla or American EVS tariff …. We will only have to take off the tariff on the Chinese.”
The Chinese BYD company for the first time at Segull EV last year at a start price of about $ 14,600 CDN for a 305 km version. The cheapest options available in Canada, in contrast to that, Start with about $ 40,000.
At the same time, the Canadian definitions have Reveal from ChinaThe officials described them as discrimination and said that they are “seriously violating the rules of the World Trade Organization.”
As of Thursday, the Chinese Ministry of Commerce said it will apply a 100 percent tariff to Canadian oil, oil cakes and peas, and 25 percent is obligatory for Canadian water products and pork – which causes The main concerns of Canadian farmers.
This week, China will impose a 100 percent tariff on the canola in response to the Canadian government that puts a tariff on Chinese electric cars. Jason Johnson is a grain plant south of Mordan, a man. He says that the federal government has shown support for the steel industry in the face of American definitions, but nothing for farmers.
Karagoyan said that Canada can build the EV industry by inviting Indian and Chinese manufacturers, along with American and European operators, to create factories in Canada.
He said that the idea of building a more closer commercial relationship with China is still taboo, and some were “suspended” when he suggested that. But he argues that Canada’s position against China was largely to satisfy the United States: “What are the business quarrels we have with China that were not manufactured in Washington?”
It may be time to stop worrying about revenge on the southern neighbor who cannot be predicted in Canada, as Karagosian said, on the pretext that Trump and others in the American government seem to see Canada as a “subordinate country” more than a respectable partner – a pattern he said has appeared long before Trump took office.
“Let’s be a sovereign nation, we follow our best interests,” he said. “Because even when we do everything for them, he may not have any kind of rewards at all.”
Canadian car manufacturers companies
Canada’s auto companies stood firm to support definitions on electric cars from China.
The head of the Canadian Automobile Manufacturers Association and CEO of Brian Kingston said that the customs tariff for the Chinese EV was “the right decision” at all and that the challenge posed by American definitions on Canadian goods – which increase the costs of consumers and threaten jobs in the automotive industry in Canada – reinforced this situation only.
It attracted Canada More than $ 46 billion in investing EV since 2020According to a report issued by the Parliamentary Budget Office, Kingston said that allowing the Chinese EVS to dump the market would put these investments – and develop the entire industry – in danger.
“China has the ability to build approximately 80 percent of the global demand for vehicles. There is a great danger if those vehicles flood the Canadian market,” he said.
Kingston said he was confident that Canada would be able to produce competitive EVS if time is given to catch China.
He said: “North Americans love to drive large vehicles, small trucks and four -wheel drive vehicles. You see electrified formats for these increased large vehicles.” “So yes, Canadians options improve every day, and prices will become increasingly competitive.”
David Adams, President and CEO of Global Auto Industry companies in Canada, said that opening the doors on Chinese EV now will make Canada investments in this sector meaningless, because the Chinese vehicles will take over the market.
He said: “The new definitions from the United States are a little abandonment, but they do not undermine the main reason that was put in this customs tariff.”
Hugo Cordo, a PhD candidate at the University of Toronto, who is looking for climate policies, said he worries a possible violent reaction from the United States if Canada is returning to its tariffs on the Chinese EVS.
He said that there may be a medium land, noting that the European Union has followed a more “reasonable” approach by increasing the Chinese EV tax from 10 percent To 45 percent And motivating Chinese companies to open factories in Europe.
“I think it is just a double -edged sword. I think we had sinned at first, I think we had to go with the European Union,” said Cordo. “I think it may still be time to comply with the European Union without falling 100 percent of the policy.”
He said that lowering prices on the cheap EVS would be “great” for Canadian consumers, saying that in the long run, allowing more competition will also be good for the Canadian car manufacturer, which he said has focused so far on high -end EVS and luxury.
China says it will impose a 25 percent tariff on Canadian seafood exports effectively March 20 as a retaliatory measure of Canadian tariffs on steel, aluminum and electricity cars last year. Geoduck Harvestter Darrell Thomas discusses how definitions can affect his work.
Professor says that Canada is still “at our mercy”
Sumett Gulati, a professor of environmental economics and resources at the University of Columbia in Vancouver, said that allowing the cheapest Chinese cars in the market can also stimulate more freight stations – which are seen as one of the largest deterrents for consumers who are considering buying EV.
He said if the federal government is separating its goal Exit sales Of the cars and trucks that operate by 2035, you will need to reach other countries for more EVS to help Canada reach its goal.
But Goulaati said that while he was disappointed by the federal government’s announcement of the definitions of China last fall, he understood this step because of the integration of Canadian and the United States.
“I don’t think we have another option because we have this integrated market tightly,” he said.
At the present time, Julati said, Canada should wait for about six months in order for the war of tariffs to stabilize before admitting that Canadian and American political industries have been “separated.”
“I think we are at this point, unfortunately, to a large extent at the mercy of what the US government is doing,” he said.
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