Canada ‘shoots itself in the foot’ with new electric vehicle tariffs

Chinese state media has criticized Canada over its decision to impose a 100% tariff on Chinese electric vehicle imports, using language that is more blunt than the Chinese government’s official response.

Canada is “shooting itself in the foot” by “following the protectionist policies of the United States,” the editor-in-chief of the Global Times, China’s state-run newspaper, wrote on Wednesday.

The country is a “hostage” to the “unhealthy” policies pursued by America [that] The Global Times claimed that “the new tariffs will only create more barriers to free market trading, resulting in deeper negative impacts and unexpected shocks to the domestic economy,” and urged Canada to “prioritize the development of its economy.”

The Chinese government and State media goes hand in hand But the ruling Communist Party is generally cautious about the messages it conveys in official statements. Its media outlets are less so.

Canada announced Monday that it will impose a 100% tariff on imports of electric vehicles made in China, starting Oct. 1. The move comes after two of Ottawa’s allies, the United States and the European Union, imposed taxes on China over concerns about unfair subsidies.

The Biden administration in May announced massive tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment. European Union earlier this month The United States has imposed tariffs of up to 36.3% on electric car imports from China, with the exception of Tesla, which received an additional reduced rate of 9%.

In a statement issued on Tuesday, Chinese Ministry of Commerce She described the move by the Canadian government as “a classic act of trade protectionism.”

“China is strongly dissatisfied with and firmly opposes this,” a ministry spokesman said in the statement, adding that Canada “blatantly violated WTO rules and blindly followed other countries.”

The spokesman added that the move “will disrupt the stability of global industrial and supply chains, seriously undermine the global economic order and economic and trade rules, and severely impact China-Canada economic and trade relations.”

Later that day, Chinese Foreign Ministry spokesman Lin Jian said: At a press conferenceChina also urged Canada to “correct its mistakes immediately, and not politicize economic and trade issues. Beijing is willing to take any necessary measures to defend the rights and interests of Chinese companies,” Lin added.

Canada said the measures were aimed at “leveling the playing field for Canadian workers” and allowing domestic producers of electric vehicles, steel and aluminum to compete at home and abroad.

Prime Minister Justin Trudeau added that Ottawa is moving to counter what he called China’s deliberate, state-directed policy.surplus energy“

— CNBC’s Sheila Chiang contributed to this report.