If Canada follows U.S. lead on Chinese EV tariffs, impact could be huge
BNN Bloomberg
In a strategic election-year manoeuvre, U.S. President Joe Biden has introduced substantial tariff increases on various Chinese goods, aiming to strengthen domestic production in crucial sectors. Although the move is aimed at protecting American labour and businesses from what Biden deems unfair practices, the impact could be huge if Canada follows suit.
According to the White House, these amendments will affect approximately US$18 billion of annual imports. Biden described these tactics by China as not merely competitive but outright cheating, highlighting the detrimental impacts they've had on the American economy. The move aims to safeguard the burgeoning U.S. EV sector from competitive pressures posed by Chinese manufacturers.
“We do not have first mover advantage; the Chinese are so far ahead of everybody,” says Ian Lee, associate professor of management at the Sprott School of Business at Carleton University. “And [according to the International Energy Agency], they have 60 per cent world market share of EVs. They are so far ahead of the U.S. and Canada it's not funny.”
The Biden administration is also intensifying its scrutiny of Chinese automotive companies in Mexico as concerns grow that China may find ways to bypass the new tariffs.
