(Ottawa) China has formally filed its complaint against Canada with the World Trade Organization (WTO) over Ottawa’s recently announced tariffs on Chinese electric vehicles, aluminum and steel.
The announcement by China’s Commerce Ministry comes after a promise made earlier this week.
Following the United States, Prime Minister Justin Trudeau announced on August 26 that Canada would impose 100% tariffs on Chinese electric vehicles and 25% on steel and aluminum.
Although the US tariffs have not yet come into effect, Canada’s will be implemented starting next month.
Finance Minister Chrystia Freeland had cited China’s unfair trade practices, as well as “appalling” environmental and labour standards that she said allow China to set unfair prices and put products on the market at the expense of the environment and workers.
PHOTO SPENCER COLBY, CANADIAN PRESS ARCHIVES
Finance Minister Chrystia Freeland
Ottawa has come under enormous pressure from some industry groups to match the U.S. tariffs, including Canadian automakers and steel and aluminum producers.
Beijing responded this week by opening an anti-dumping investigation into Canadian canola imports and vowed to defend the “legitimate rights and interests of Chinese enterprises.”
The decision by the United States and Canada to impose tariffs on Chinese electric vehicles, which are much cheaper, comes as both countries are investing heavily in building domestic supply chains for electric vehicles.
Chinese models aren’t making much of a dent in Canada’s electric vehicle market right now. But imports from China have exploded in the past year since Tesla decided to order its vehicles sold in Canada from its Shanghai factory, rather than the United States.
The federal government also announced a 30-day consultation period to examine the threat of Chinese imports in other sectors, including batteries and battery parts, semiconductors, solar energy products and critical minerals.
An RBC report released earlier this week warned of the threat of retaliation from China over the tariffs. Analysts said the tariffs would add to domestic cost pressures while undermining Canada’s goal of phasing out sales of new gasoline-powered vehicles by 2035.