Manitoba Premier Wab Kinew has urged the prime minister to eliminate Canada’s 100% tariff on Chinese electric vehicles in exchange for China removing its tariffs on Canadian canola and pork. Kinew expressed concerns about the impact of the trade dispute on Western Canada in a letter to Mark Carney.
According to Kinew, China’s retaliatory tariffs, believed to be a response to Canada’s imposition of the electric vehicle levy, have led to significant declines in canola prices and severe financial losses for a Manitoba pork producer. The electric vehicle duty was implemented by Canada last year in alignment with the United States to safeguard the domestic automobile industry.
Saskatchewan Premier Scott Moe had previously advocated for the removal of the electric vehicle tariff under certain conditions, emphasizing the importance of maintaining positive relations with the U.S. Kinew emphasized the escalating harm to Prairie producers as long as the tariffs remain in effect.
Kinew highlighted a recent statement by the Chinese ambassador to Canada, Wang Di, offering to lift tariffs on canola and pork if Canada rescinds the tax on Chinese electric vehicles. Kinew described this as a pivotal moment and urged swift action from Carney’s government.
The Chinese ambassador argued that the tariff on Chinese electric vehicles violates World Trade Organization regulations and suggested that removing it would reinforce Canada’s commitment to a rules-based international trade framework. China currently imposes substantial tariffs on Canadian canola and pork products.
While Ottawa has accused China of unfair trade practices in the electric vehicle sector, it announced a review of the 100% tariffs on Chinese electric vehicles without specifying a timeline for completion. The tariffs came into effect on October 1, 2024, and Ottawa committed to reviewing the measure within a year of implementation.
Recent data indicates a sharp decline in Saskatchewan’s canola exports to China, with exports plummeting by 76% in August compared to the previous year. Ontario Premier Doug Ford supported maintaining the 100% tariff on Chinese electric vehicles to safeguard Canada’s auto industry amid ongoing trade negotiations with the U.S., without addressing the canola tariff in his correspondence with Carney.
