Manitoba’s Premier, Wab Kinew, has urged Prime Minister Mark Carney to eliminate Canada’s 100 percent tariff on Chinese electric vehicles in exchange for China lifting its tariffs on Canadian canola and pork. In a letter to Carney, Kinew emphasized the negative impact of the ongoing trade dispute on Western Canada, stating that China’s retaliatory tariffs have significantly affected canola prices and led to a substantial financial loss for a Manitoba pork producer.
The electric vehicle duty was imposed by Canada last year in alignment with the United States, with the aim of safeguarding the domestic automobile industry. Kinew highlighted the escalating harm to Prairie producers caused by the existing tariffs and emphasized the need for Canada’s trade policy to strike a balance between long-term industrial objectives, national security concerns, and immediate economic realities.
The Chinese ambassador to Canada recently expressed a willingness to lift tariffs on canola and pork if Canada removes the tax on Chinese electric vehicles. This opportunity was underscored by Kinew as a crucial moment that Carney’s government should seize. The ambassador also criticized the tariff on Chinese EVs, stating that it violates World Trade Organization rules and undermines Canada’s advocacy for a rules-based international economic order.
China currently imposes significant tariffs on Canadian agricultural products, including a 76 percent tariff on canola seed imports and a 100 percent tariff on canola oil, meal, and peas. Ottawa has accused Beijing of unfair practices in the electric vehicle industry, leading to the imposition of tariffs. The review of the decision to impose 100 percent tariffs on Chinese electric vehicles, initiated last month by Ottawa, has not provided a timeline for completion.
Saskatchewan’s canola exports to China have notably declined, with August exports plummeting by 76 percent compared to the previous year. Despite calls from Saskatchewan Premier Scott Moe and Ontario Premier Doug Ford to maintain the tariff on Chinese electric vehicles for different reasons, Kinew’s focus remains on resolving the trade conflict to benefit Canadian agriculture.
