Impose tariffs on Chinese electric vehicles, ex-U.S. envoy urges Canada

A former U.S. ambassador to Canada is urging Ottawa to join the U.S. and the EU in placing tariffs on Chinese electric vehicles amid concerns Beijing’s government subsidies are flooding the international market with cheaper cars.

On Wednesday, the EU threatened to impose tariffs up to 38 per cent on imported Chinese EVs starting on July 4. That increase comes in the wake of U.S. President Joe Biden quadrupling import tariffs on electric vehicles made in China to 100 per cent a month ago on May 14.

Bruce Heyman, who was the U.S. ambassador to Canada from 2014 to 2017 under former president Barack Obama, said Canada should follow the U.S. because the two countries are strong trading partners.

“I think what’s important is that Canada and the U.S. become aligned in some of these policies that take place globally, and we’re not always completely aligned,” Heyman said.

Chinese foreign minister spokesperson Lin Jian called the moves “protectionism” and warned the stability of global automobile production may be impacted.

Prime Minister Justin Trudeau discussed the EU’s new auto tariffs on China with European commissioner Ursula von der Leyen Friday at the G7 in Apulia, Italy, but Canada has not changed its policy.

After Biden announced the tariff hike, Trudeau said his government was “watching very closely.”

Yet, a month later, the federal government still has not committed to raising Canadian import tariffs above the current six per cent on Chinese-made vehicles.

There are concerns manufacturers will take advantage of Canada’s more relaxed approach to Chinese-made EVs and create a loophole around U.S. import tariffs.

Heyman cited his previous work to stop the flow of counterfeit goods coming into the U.S. via Canada, which he said were