Ontario Premier Doug Ford is advising Prime Minister Mark Carney to remain steadfast during his upcoming trip to China and maintain the high tariffs on electric vehicles. This decision by Canada, in alignment with former U.S. President Joe Biden, to impose a 100% tariff on EVs stirred trade tensions with China, with the justification of safeguarding Canada’s local auto industry.
In response, China imposed tariffs on canola, seafood, and pork, prompting calls from various quarters, including Prairie premiers, for Ottawa to remove these duties to alleviate pressure on Canadian farmers and producers. However, Ford, a vocal advocate for Ontario’s auto sector, emphasized the importance of holding firm on this issue, stating, “We can’t retreat. It’s as simple as that.”
Ford expressed that if China is willing to establish a major manufacturing facility in Canada and employ Unifor union members, there could be discussions. Nevertheless, he emphasized the significance of not importing cars that are not manufactured by Ontarians.
During Carney’s upcoming discussions with China’s President Xi Jinping and other top officials, trade will be a central point of focus. The aim is to mend the strained relationship that escalated in 2018 following the detention of Canadians Michael Kovrig and Michael Spavor by China, seen as retribution after Canada apprehended the CFO of Huawei Technologies.
The agenda for the talks includes trade, energy, agriculture, and international security. When asked about potential compromises on EV tariffs, Ford reiterated the importance of manufacturing these vehicles locally, emphasizing the skill and expertise of Canadian auto workers as the ultimate compromise.
In a separate development, last year China’s ambassador to Canada hinted at the interest of Chinese electric vehicle giant BYD in investing in Canada. The ambassador mentioned that BYD had considered investing in Canada but faced significant obstacles and eventually abandoned the idea. The presence of BYD in Canada was anticipated to offer Canadians access to high-quality and cost-effective electric vehicles.