Canada Slaps 100% Tariffs on Chinese Electric Vehicles
Canada Slaps 100% Tariffs on Chinese Electric Vehicles
Transcript
00:00Which brings us to Canada, it's picking a battle with China.
00:08Ottawa has imposed a 100% tariff on Chinese EVs, that's electric vehicles.
00:14Prime Minister Justin Trudeau says China has an unfair advantage, so he wants to prevent
00:18that by slapping a 100% tax on imports.
00:22Beijing, on the other hand, has slammed this move.
00:24It has called it protectionism.
00:27Now Canada is not the first country to do something like this.
00:29The US imposed 100% tariffs on Chinese EVs in the month of May.
00:34The European Union too has hiked tariffs on Chinese cars.
00:38So this move by Canada is part of a wider battle between the West and China.
00:43Will it escalate in the coming days?
00:45And who has the advantage in this EV showdown?
00:48Our next report tells you.
00:50We will be introducing a 100% tariff on Chinese made electric vehicles.
00:59With that, Canada has followed America's lead.
01:03It's imposed a 100% tariff on Chinese EVs, that's electric vehicles.
01:08What does that mean?
01:10A tariff is a tax imposed by any government on imported goods.
01:14A 100% tariff means the importer will have to pay a tax equal to the value of the item.
01:21For example, a Chinese EV costs around $30,000.
01:26Canada imposes a 100% tariff.
01:29So the total cost of the car would be $60,000.
01:33Basically it makes Chinese EVs much more expensive.
01:38So why is Canada doing this?
01:40Prime Minister Justin Trudeau says China has a policy of overcapacity.
01:46What he means is Chinese EV makers get government subsidies and that means they can make cheap cars.
01:52These cars then flood overseas markets and that impacts EV industries in other countries.
01:59Ottawa wants that to stop.
02:02We are transforming Canada's automotive sector to be a global leader in building the vehicles of tomorrow.
02:10Factors like China have chosen to give themselves an unfair advantage in the global marketplace,
02:16compromising the security of our critical industries and displacing dedicated Canadian autos and metal work.
02:24China is Canada's second largest trading partner.
02:28So what is Beijing saying?
02:30It's calling it trade protectionism.
02:33China says this is against the WTO rules, that's the World Trade Organization.
02:38Beijing also claims Ottawa's move undermines the global economic system.
02:44It is important to emphasize that Canada's actions ignore objective facts, disregard WTO rules,
02:51and go against historical trends, representing a typical protectionist approach.
02:57So how much will this ban impact China?
03:01Well, not very much.
03:03Currently Canada only imports one Chinese-made EV car, it's Tesla.
03:08No other Chinese-made EVs are sold in the country, so the damage won't be too much.
03:15But Canada is not alone in this battle.
03:18There's a massive EV trade war that's brewing, and it's China versus the West.
03:23In May, America slapped a 100% duty on Chinese EVs.
03:28In July, the EU raised tariffs on Chinese EVs to 37.6%.
03:34The West says it's against China's subsidies to the EV industry.
03:38They believe it gives Chinese carmakers an unfair advantage.
03:42So they're imposing tariffs to negate that.
03:46But will it really help?
03:48China makes up for 60% of all electric vehicle sales.
03:53In 2022, China sold 5.9 million EVs.
03:58Meanwhile, the rest of the world only sold over 4 million.
04:02Plus, they tend to be cheaper. That's because of the subsidies.
04:06And also because batteries are manufactured by Chinese companies.
04:10All this gives Chinese EVs a competitive edge.
04:14They can sell EVs for as little as $12,000.
04:18So how is the West trying to fight back?
04:21It's already imposing tariffs on Chinese cars.
04:24But just doing that won't help.
04:27So some governments are also offering tax breaks.
04:30Which brings us to the EV industry.
04:33The global EV market could be worth $900 billion by 2030.
04:38China is looking at the EV industry as the key to its future development.
04:43The West is geared to prevent it.
04:45Which means this war will get even more intense in the days to come.
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