China accuses Canada of protectionism over 100 percent tariffs on electric vehicles

China accuses Canada of protectionism over 100 percent tariffs on electric vehicles

Business

“China is strongly dissatisfied and firmly opposes this,” it said in a statement.

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BEIJING (AP) — China on Tuesday accused Canada of protectionism after Prime Minister Justin Trudeau’s government imposed a 100% tariff on imports of Chinese-made electric vehicles, matching U.S. duties on Chinese EVs.

The Chinese Commerce Ministry said the tariffs would disrupt the stability of global industrial and supply chains, severely impact China-Canada economic and trade ties and damage the interests of enterprises in both countries.

“China is strongly dissatisfied and firmly opposes this,” it said in a statement.

“Canada claims it supports free trade and the multilateral trading system based on (World Trade Organization) rules, but it blatantly violated WTO rules and announced it will take unilateral tariff measures by blindly following individual countries. It is typical trade protectionism,” it added.

The ministry urged Canada to “immediately correct its wrong practices” and said that Beijing would take any necessary measures to defend the rights and interests of Chinese companies.

Canada’s announcement came after encouragement by U.S. national security adviser Jake Sullivan during a meeting with Trudeau and Cabinet ministers on Sunday. Sullivan began his first visit to Beijing on Tuesday.

Chinese officials are likely to raise concerns about the American tariffs with Sullivan as Beijing continues to repair its economy, which was hit by the COVID-19 pandemic. In May, U.S. President Joe Biden slapped major new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment.

A Chinese Foreign Ministry spokesperson on Tuesday urged Canada to “not politicize economic and trade issues.”

“China’s burgeoning electric vehicle industry is the result of continuous technological innovation, a well-established industrial and supply chain and full market competition,” spokesperson Lin Jian said.