The Canadian government’s recent decision to impose 100-percent tariffs on Chinese electric vehicles (EVs) aligns with U.S. policy, particularly in light of potential future leadership by Donald Trump. However, this move reflects broader concerns beyond just EVs. Ottawa also imposed 25-percent tariffs on Chinese aluminum and steel, acknowledging China’s dominant and often anti-competitive role in global markets, as seen in sectors like solar power.
China’s economic model, heavily reliant on exports and state subsidies, has long undermined foreign competition. Despite promises made when joining the World Trade Organization (WTO) in 2001, China has frequently failed to open its markets as agreed. Instead, it has pursued aggressive strategies to acquire foreign technology, often through illicit means.
Canada, along with other nations, has been reluctant to hold China accountable, avoiding taking disputes to the WTO. However, as China’s global influence grows, it is increasingly essential to enforce fair trade practices. Foreign Minister Mélanie Joly’s efforts to rebuild diplomatic ties with China are crucial, but progress is hampered by strained relations between Prime Minister Justin Trudeau and President Xi Jinping.
Moving forward, Canada should champion a “level-playing-field policy,” working with other nations to compel China to adhere to international trade rules. In return, Canada could be more open to Chinese products, which could benefit Canadian consumers, especially in the EV market. However, such progress will also require revitalizing the WTO to ensure it can effectively enforce these standards. Until then, Canadian consumers will miss out on affordable, high-quality Chinese EVs, which could otherwise contribute to reducing greenhouse gas emissions.
