Prime Minister Mark Carney has been handed a golden parachute by the Chinese government. Their ambassador has said quite plainly: if Canada removes its 100% tariffs on Chinese electric vehicles, China will reciprocate by dropping its crippling levies on Canadian agriculture, most notably canola and pork. It’s not a gift. It’s leverage. But it’s an opportunity.
Canada imposed its EV tariff regime last October, following the lead of the United States. The justification was to protect domestic manufacturing and guard national security. At the time, Ottawa argued China unfairly subsidized its EV sector, flooding the market with low-cost vehicles. The federal government also slapped 25% tariffs on Chinese steel and aluminum, further heightening trade tensions.
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