Recently, according to reports from Global Times, Canada's Minister of Export Promotion, International Trade, and Economic Development, Mary Ng, stated in a telephone interview on May 17th that Canada is considering whether to increase tariffs on electric cars manufactured in China. Earlier this month, the White House announced tariffs on goods such as electric cars imported from China. In response, Chinese Foreign Ministry spokesperson Wang Wenbin urged the U.S. to abide by WTO rules, calling for the immediate cancellation of the tariffs. China vowed to take all necessary measures to defend its interests.
According to Bloomberg, Mary Ng was interviewed by phone on May 17th while attending Asia-Pacific Economic Cooperation-related activities in Peru, discussing the issue of imposing tariffs on Chinese-made electric cars. She stated in the interview, "We are studying this issue very carefully, and we are also having open discussions with our U.S. partners." When asked whether Canada needs to adjust tariffs on Chinese-made electric cars to align with the U.S., Ng replied that the Canadian government is discussing policy matters with U.S. officials, stating, "We are certainly considering this issue." She also emphasized that Canada's focus is on domestic production of electric cars.
On May 14th, the White House announced, citing so-called "unfair trade practices" by China, that Chinese imports worth $18 billion, including electric cars, would face increased tariffs under Section 301 of the Trade Act of 1974, to protect American workers and businesses. The White House claimed that this action against China was strategically targeted, involving industries such as electric cars, lithium batteries, and photovoltaic cells. Craig Allen, President of the U.S.-China Business Council, stated in a release on the 14th that maintaining Trump-era tariffs and imposing additional taxes would ultimately make it more difficult for American companies to compete domestically and internationally, leading to reduced job opportunities. Against the backdrop of continued inflationary pressures, this would also raise the U.S. Consumer Price Index.
Regarding the issue of the U.S. announcing tariffs on Chinese electric cars and other goods, Wang Wenbin stated at a press conference on May 15th that the U.S. continued politicization of economic and trade issues and further increasing tariffs on China is compounding errors, significantly raising the cost of imported goods, and causing more losses for American businesses and consumers, who will bear a greater cost. According to estimates by Moody's, U.S. consumers bear 92% of the cost of tariffs imposed on China, increasing annual household expenses by $1,300. Protectionist measures by the U.S. will also cause greater disruption to the security and stability of the global production and supply chain. We note that several European political figures have stated that imposing tariffs is a detrimental move to global trade. Wang Wenbin reiterated the call for the U.S. to abide by WTO rules and immediately cancel the tariffs on China. China will take all necessary measures to safeguard its own interests.
