Canada Weighs EV Tariff Review Amidst Canola Trade Concerns with China
Winnipeg, Manitoba – Canada is considering whether to lift its 100% tariff on Chinese electric vehicles (EVs), but any decision will be carefully weighed against the impact on other Canadian industries, especially canola producers, Federal Agriculture Minister Heath MacDonald stated Tuesday in Winnipeg.
The tariff on Chinese EVs, implemented last year mirroring a move by the United States, is currently under a 12-month review. Shortly after Canada’s action, China responded by imposing tariffs on Canadian canola, a move widely interpreted as retaliation. This has significantly impacted Canadian canola farmers and the broader industry.
The canola sector contributes $43 billion to the Canadian economy and supports 200,000 jobs, according to the Canadian Chamber of Commerce. Producers have voiced concerns about the impact of the Chinese tariffs during recent meetings with federal and provincial ministers, including a tour of farms in Manitoba.Premiers Scott Moe of Saskatchewan and Danielle Smith of Alberta have publicly urged Ottawa to remove the EV tariffs. While Minister MacDonald acknowledged the government is “looking at” the possibility, he emphasized the need to avoid jeopardizing other trade relationships. He refrained from commenting specifically on the United States’ role as a major importer of Canadian canola.
“Every decision…we want to ensure that we’re not jeopardizing a situation that could be ever broader,” MacDonald told reporters. He added that speculating on potential decisions before understanding China’s specific demands could negatively affect other sectors.
Manitoba Agriculture Minister Ron Kostyshyn stressed the importance of consulting all provinces before any changes are made to the EV tariffs.
The federal government recently announced a $370-million production incentive package for the canola sector to mitigate the effects of the Chinese tariffs. However, the Canadian Canola Growers Association argues this support is insufficient and doesn’t fully address the challenges faced by exporters and processors.
MacDonald reiterated the government’s commitment to reopening the Chinese market for canola and indicated that further support measures may be forthcoming, echoing assurances from Prime Minister Mark Carney. A Canadian delegation, including Parliamentary Secretary to the Prime Minister Kody Blois and Saskatchewan Premier Scott Moe, is currently in China for trade discussions.
