Conservatives want Canada to match U.S. tariffs on Chinese EVs - Dan in Ottawa

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Photo: Contributed

Central Okanagan-Similkameen-Nicola MP Dan Albas

As the Central Okanagan is one of the fastest-growing regions, it's common sense that one consequence of this growth is more vehicles on the road to service its growing population.

When I travel around our beautiful area of Central Okanagan-Similkameen-Nicola, I see more electric vehicles on our roads.

It’s no surprise to see the market adjust to this reality. It was reported earlier this year West Kelowna’s Norson Construction was issued a building permit for a 30,000-square-foot Tesla dealership, to be located across from the Kelowna International Airport. Most electric vehicles in our area are made in North America. Canada is an important part of the North American auto industry, supporting many jobs.

I mention that because China is quickly becoming a major producer of electric vehicles and wants to export them to North America.

The United States, led by President Joe Biden, said electric cars made in China will have a 100% tariff applied—essentially doubling the price of the vehicle—when brought into the U.S. in 2024 because of "unfair trade practices."

Other Chinese products like steel, aluminum, semiconductors, batteries and solar cells will also face higher tariffs. Critics in the U.S. opposed to such tariffs on Chinese-made goods correctly point out it will raise prices of Chinese imports, making them less affordable for consumers.

The debate raises an important question—what should Canada do in response? The U.S. is our biggest trading partner. For many years, the Auto Pact, and the subsequent versions of North American Free Trade Agreement (NAFTA), now renamed the Canada-USA-Mexico Agreement (CUSMA) have further integrated and connected our manufacturing and supply chains in fundamental ways.

As the U.S. is the largest market in CUSMA and our supply chains are integrated, the same threats to jobs and industries in the United States also apply to jobs and related industries in Canada.

Last week, Conservative Leader Pierre Poilievre outlined what a Conservative government would do to protect Canadian jobs and industries. In summary, it would match the U.S. tariffs on electric vehicles.

"[China has] taken technology from Western countries, blocked access to global supply chains, and heavily supported their steel, aluminum, and electric vehicle industries,” Poilievre said. “They want to destroy our steel, aluminum, and car production and take our jobs away."

What will the federal Liberal government do? Aside from criticizing Poilievre, it has not indicated its plans to date. The finance minister has stated she is “concerned with China’s unfair trade practices undermining the Canadian EV industry” and the government is consulting while it tries to come up with a position.

My question this week:

Do you support tariffs on China-produced electric vehicles imported into North America? Why or why not?

I can be reached at [email protected] or call toll free 1-800-665-8711.

Dan Albas is the Conservative MP for Central Okanagan-Similkameen-Nicola.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

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