Canada to explore trade barriers against Chinese vehicles next week

Canada’s Finance Minister, Chrystia Freeland, will initiate talks with business and labour groups next week to explore the possibility of erecting trade barriers against Chinese-made vehicles.

While the initial focus was on electric vehicles, Freeland hinted that the consultation could extend beyond autos.

Canada closely monitors the Biden administration’s actions on tariffs against Chinese products, as it heavily relies on trade with the US.

Deputy Prime Minister Freeland emphasised the need to consider trading relationships from a national security perspective.

Canada’s government is aligning with G7 allies in response to the US and EU imposing tariffs on Chinese goods. Canada may increase tariffs on Chinese electric vehicles, currently at six per cent.

China denies allegations of flooding markets with cheap goods. The government faces pressure to protect local jobs and wages in the auto industry by potentially imposing barriers on Chinese electric vehicles.

Labour is a crucial factor, and it’s time to address it, she emphasised. China’s deliberate policy of overcapacity in its centrally planned communist economy is significant.

Trudeau’s government has been embroiled in diplomatic and trade conflicts with China, particularly after the arrest of Huawei executive Meng Wanzhou. This resulted in the prolonged detention of two Canadian citizens by China for nearly three years.

Attribution: Bloomberg