Should Canada facilitate its 100% tariff on electric vehicles from China in the middle of a trade war with the US?

The Canadian trade war with the United States has some economists who think about whether the federal government should facilitate or raise their 100 – % tariff on Chinese electric vehicles, which some would say that it could encourage the purchase of EV -and to apply the Elona men’s Tesla.

Car manufacturers, however, say the tariffs are crucial for the protection of the congenital industry of EV this country.

Canada followed now in applauding tariffs to Chinese EV Last fall, simultaneously putting 25 -and -out accessories for imports of steel and aluminum products from China.

That was before Donald Trump became US president and hit Canada with Tariff stormincluding steel and aluminum used in vehicle production.

Public opinion also expressed On Trump’s advisor and technological billionaire Musk, whose Teslas are the best-selling EVs in Canada. Politicians thought about targeted actions against Tesla, with the leader of NDP Jagmeet Singh and a former candidate for liberal leadership Chrystia Freeland They both throw 100 percent of vehicles on vehicles.

Julian Karaguesian, an economist and lecturer at McGill University in Montreal, said it was time to review tariffs at China.

“I think quietly, we’re thinking about mitigating some of these measures. And I actually think we should,” he said.

“If we wanted to have a targeted response to Trump’s administration in his biggest financial fans, we don’t have to tariff Tariff Tergl or US EV …. we just have to take off the tariff to the Chinese.”

The Chinese car manufacturer byd debuted his Seagull EV last year at an initial price of about 14,600 CDN for a 305-kilometer range. In contrast, the cheapest options in Canada Start with approximately $ 40,000.

In the meantime, the Canadian tariffs have caused retaliation from Chinawhere officials called them discriminatory and said that “they seriously violate the rules of the World Trade Organization.”

In force on Thursday, the Chinese Ministry of Trade said it would apply a 100 -pointed tariff to Canadian oil oil rap, oil cakes and imports of peas, and 25 percent on Canadian water products and pork – causing it – causing it Main concerns for Canadian farmers.

Karaguezian said Canada could build its EV industry by inviting Indian and Chinese manufacturers, along with American and European operators, to set up a factory in Canada.

The idea of ​​building a closer trade relationship with China is still a bit taboo, he said, and some were “appalled” when he suggested. But he claims that the position of Canada against China was largely to calm the US: “What business quarrels do we have with China that is not produced in Washington?”

Maybe it’s time to stop worrying about retaliation from the unpredictable southern neighbor of Canada, said Karaguiesian, claiming that Trump and others in the US G

“Let’s just be a sovereign nation, we follow our best interests,” he said. “Because even when we do everything for them, there may be no reward at all.”

Canadian car manufacturers Back tariffs

Car manufacturers in Canada firmly supported the tariffs on electric vehicles from China.

The President and Executive Director of Canadian Vehicle Manufacturer Brian Kingston said that the tariffs in Chinese EV “absolutely” the right decision and that the challenge that US tariffs have set on Canadian goods – which increase consumers’ costs and threatens jobs in Canadian auto industry – they just strengthened the case.

Canada attracted More than $ 46 billion in investment of EV since 2020According to a report from June 2024, the office of the parliamentary budget officer, and Kingston said that the allowance of the Chinese EV would flood the market of these investments – and the development of the entire industry – threatened.

“China has a capacity to build nearly 80 percent of the demand of global vehicles. There is a huge risk if these vehicles flood the Canadian market,” he said.

Kingston said he was convinced that Canada would be able to produce EV’s competitive prices if they were assigned time to enter China.

“North Americans like to drive larger vehicles, trucks and SUVs. You see the electrified formats of these vehicles with increasing range,” he said. “So, yes, opportunities for Canadians are getting better, and prices will eventually become more competitive.”

David Adams, President and CEO Global Makentar from Canada, said the opening of the door to China’s EV will now make investments in Canada into the sector meaningless, as Chinese vehicles will take over the market.

“The new now -US tariffs are certainly a little frozen water, but they do not undermine the fundamental reason why these tariffs have been set up,” he said.

Hugo Cordeau, a doctorate in economics at the University of Toronto, who is investigating climate policy, said he cares for a potential return reaction from the US if Canada returns to his tariffs to Chinese EV.

He said there could be a medium terrain, noting that the European Union took a “more understandable” approach by increasing its accessories in Chinese EV with 10 percent up to 45 percent of and encouraging Chinese companies to open factories in Europe.

“I believe it’s just a double blade sword. I think we were wrong at first, I think we should have been with the EU,” Cordeau said. “I think it’s probably still a time to align with the EU without 100 percent give up politics.”

The reduction of the prices of cheap EV would be “great” for Canadian consumers, he said, claiming that in the long run it would allow greater competition to be good for Canadian auto industry, which he said has focused on luxury EV top-notch Eve.

Canada still ‘at grace’ us, says the professor

Sumeet Guleta, professor of environmental ecological and resources at the British Columbia University in Vancouver, said that enabling cheaper Chinese vehicles could also stimulate multiple charging cells – whose disadvantage is considered one of the biggest distractions from consumers who are considering buying EV.

Said that if the federal government lacked the goal on abolish sales From cars and trucks to gas by 2035, they will have to contact other countries in order to help more EV to Canada to achieve its goal.

But Gutio said he was disappointed with the announcement of the Federal Government on Cinema Tariffs last fall, he understood the move due to the integrated Canadian and American auto industry.

“I don’t think we have another choice because we have this firmly integrated market,” he said.

For now, Gulati said, Canada should wait about six months for the tariff war to settle before admitting that the Canadian and American auto industry were “separated”.

“I think at this point, unfortunately, we are pretty much at the grace of what the US government is doing,” he said.