Canada's industry minister says Ottawa is "considering all measures" after the U.S. announced it would be hiking tariffs on Chinese electric vehicles and other related goods.
François-Philippe Champagne wouldn't rule out Canada imposing similar tariffs during an interview with CBC News Network's Power & Politics on Friday.
"It's fair to say that everything is on the table to protect our industry and our workers," Champagne told host David Cochrane.
"We're working in sync with the United States of America."
President Joe Biden announced earlier this week that the U.S. would be slapping new tariffs on Chinese electric vehicles (EVs), advanced batteries, solar cells, steel, aluminum and medical equipment.
The tariffs are to be phased in over the next three years; those that take effect in 2024 are covering EVs, solar cells, syringes, needles, steel and aluminum and more.
There are currently very few EVs from China in the U.S., but American officials worry that low-priced models made possible by Chinese government subsidies could soon start flooding the U.S. market.
In a separate interview on Tuesday, Flavio Volpe, president of the Automotive Parts Manufacturers' Association, said "Canada has to" implement similar trade levies.
"Now that the Americans have put up a tariff wall, we can't leave the side door open here," Volpe told guest host John Paul Tasker.
Brian Kingston, president of the Canadian Vehicle Manufacturers Association, echoed Volpe's argument in a post on X, formerly Twitter.
"Canada cannot be out of step with the U.S. on China. We need aligned policies that strengthen the North American auto supply chain," he wrote.
Champagne insisted that Canada wouldn't be a route for China to gain access to the North American EV market.
"Canada has never been and will never be a backdoor [for] China in the North American market and our U.S. friends understand that," he said.
The federal government has partnered with provinces to attract investments from major automotive manufacturers to spur electric vehicle production in Canada.
The same day the U.S. announced its new tariffs, Asahi Kasei Corp., in partnership with Honda, announced the construction of a $1.6-billion electric vehicle battery plant in Port Colborne, Ont.
Volpe said domestic EV production could be held back if China floods the Canadian market with cheaper products.
"There's no logic for Canada to force our market to electrify and then turn the market over to the Chinese," he said.
China has maintained that the U.S. tariffs are a violation of international trade rules. It is not clear how the country will respond at this point.
Volpe suggested Beijing could retaliate by implementing export controls on its critical minerals that are used in EV battery manufacturing.
Champagne said it's important for Canada to shore up its own critical mineral production.
On Thursday, Canada and the U.S. announced they would be co-investing in critical mineral producers for the first time as they work to boost regional supplies.
Natural Resources Canada and the U.S. Department of Defense are together putting about $32.5 million into Fortune Minerals Ltd. — which is working on a project with bismuth and cobalt in the Northwest Territories — and Lomiko Metals Inc., focused on a graphite project in Quebec.
They're also investing heavily in domestic battery plants and retooling auto plants for EV production. There are a lot of jobs in Canada that are well paid and unionized in the industry. Of course they wouldn't be able to compete with China on cost
So is the solution for the underpaid workforce a cheap utility we should be moving away from, or a bolstered local workforce producing these utilities here?
Not to mention foreign slave labour that's subsidized by a government intent on taking as much of the western world with them when they crash and burn.
Not only that, but Chinese industry is declining so hard right now that even the EV industry is on the verge of failing with record number of companies in the middle of shutting down, so relying on Chinese EVs is not just asking for destroying our local industries, but also have our supply vanish the moment the Chinese are unable to deliver once they can't even get half the parts to build them due to all the tarrifs that are being put on them.
Then there's there's all the stories of Chinese EVs spontaneously combusting that keep popping up before being covered up. I think there's been at least two cargo ships that went up after the EVs they were carrying suddenly caught fire, then all the thousands of EVs that caught fire after minor bumps due to a lack of safety features. Even the Russians are saying no to Chinese EVs lately due to how bad they are.
How is shipping cars over on giant container ships that are some of the worst sources of pollution on the planet while building them in places with worse environmental standards good for the environment?
The answer of course is that a single ICE vehicle contributes more pollution in a year than what you describe. So, selling more electric vehicles is great for the environment ( what happens when you lowers their prices ) even if you build them in China.
If an EV stays on the road for 20 years, it will be a net environmental win for 17 or 18 of them.
[Note: I do not really want to import cars from China but let’s not resort to lying to make that happen. ]
The reason it is less expensive to manufacture in China is literal slavery. If iPhones were manufactured and assembled with no slave labour at all (mining, silicon forging, plastic manufacturing, plastic molding, metal casting, board manufacturing, assembly, and shipping) it would cost 2 or 3 times as much.
Breaking reliance on slave labour means moving away from disposable electronics and towards devices that last for 10+ years. But no one wants to use the same phone or computer for more than a couple years and even fewer people want to work in a manufacturing environment.
I’m currently using my 2008 MacBook Pro. For basic web browsing, text editing and music playing, it works great. And for other stuff it handles remote desktop sessions just fine.
On the original topic, I can’t say that I’ve seen any Chinese vehicles on the road or for sale… is the government trying to get out in front of that one?
The big issue is bicycles — every bicycle (especially the electric ones) has a bunch of components only available from China, with other manufacturers priced out of the market years ago.