Canada is 'shooting itself in the foot' with new EV tariffs, according to China's state media.

Canada is 'shooting itself in the foot' with new EV tariffs, according to China's state media.
Canada is 'shooting itself in the foot' with new EV tariffs, according to China's state media.
  • The Chinese media has been more critical of Canada's decision to impose high tariffs on Chinese electric vehicles than the government has been.
  • The editor of the Global Times, a Beijing government mouthpiece, wrote that Canada is "hurting itself" by "adopting U.S.' protectionist policies."
  • Canadian officials stated that the measures are implemented to ensure a fair competition for Canadian workers and enable domestic EV, steel, and aluminum manufacturers to compete effectively both domestically and internationally.

Beijing's official government response has been more reserved than the criticism of Canada's decision to impose 100% import tariffs on Chinese electric vehicles by its state media.

The editor of the Global Times, a Chinese government mouthpiece, wrote Wednesday that Canada is "hurting itself" by "adopting U.S.' protectionist policies."

The Global Times claimed that America's "unhealthy policies" are "holding hostage" the country, creating more barriers to free market circulation and leading to negative impacts on the domestic economy. The paper urged Canada to prioritize its own economic development.

The Chinese government and its state media closely align in terms of thought and politics, but the ruling Communist Party tends to be cautious in its official messaging. However, its media is less restrained.

Canada announced that it will impose 100% tariffs on electric vehicles made in China, effective October 1st. This decision was made in response to the actions of two of Ottawa's allies, the US and the European Union, who imposed taxes on China due to concerns about unfair subsidies.

In May, the Biden administration announced tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum, and medical equipment. Meanwhile, the European Union imposed tariffs of up to 36.3% on imports of electric vehicles from China, except for Tesla, which received a reduced extra rate of 9%.

The Canadian government's move was characterized as "typical trade protectionism" by China's Ministry of Commerce in a statement on Tuesday.

"China strongly opposes Canada's actions, which it sees as a violation of WTO rules and an example of blindly following other countries."

The spokesperson stated that the move would disrupt global industrial and supply chains, seriously undermine the global economic system and economic and trade rules, and severely impact China-Canada economic and trade relations.

At a press conference, Lin Jian, the Chinese Foreign Ministry spokesman, urged Canada to "immediately correct its wrongdoing and not politicize economic and trade issues." He added that Beijing is prepared to take any necessary measures to defend the rights and interests of Chinese companies.

Canadian officials stated that the measures are implemented to ensure a fair competition for Canadian workers and enable domestic EV, steel, and aluminum manufacturers to compete effectively both domestically and internationally.

Ottawa is taking steps to counter China's intentional state-directed policy of "over-capacity," as stated by Prime Minister Justin Trudeau.

– CNBC's Sheila Chiang contributed to this report.

by Anniek Bao

Politics