Manitoba Premier Wab Kinew has urged Prime Minister Mark Carney to eliminate Canada’s 100 percent tariff on Chinese electric vehicles as part of a deal to have China remove its tariffs on Canadian canola and pork. Kinew expressed concerns in a letter to Carney, emphasizing that the current trade situation has created a challenging scenario for Western Canada.
The premier highlighted the negative impacts of China’s retaliatory tariffs, attributing a significant decline in canola prices and a substantial financial hit on a Manitoba pork producer to these trade barriers. The electric vehicle tariff, implemented in alignment with the United States, aims to safeguard Canada’s automobile industry.
Saskatchewan Premier Scott Moe had also raised concerns about the electric vehicle tariff, conditioning its removal on maintaining positive relations with the U.S. Kinew stressed the urgency of resolving the tariff issue, emphasizing the deepening harm to Prairie producers as each day passes.
Pointing to recent statements by the Chinese ambassador to Canada, Kinew underscored the potential for a trade breakthrough if Canada acts swiftly. The ambassador proposed a mutual elimination of tariffs – Chinese on canola and pork, and Canadian on Chinese electric vehicles.
Kinew urged Carney’s government to seize this “critical moment” and emphasized the need for a trade policy that balances long-term objectives with immediate economic realities. The premier cited the Chinese ambassador’s view that removing the electric vehicle tariff would align with international trade rules and reinforce Canada’s commitment to fair trade practices.
China currently imposes substantial tariffs on various Canadian agricultural products, while Ottawa accuses Beijing of unfair trade practices in the electric vehicle sector. The review of the 100 percent tariffs on Chinese electric vehicles, implemented in October 2024, is ongoing without a clear timeline for a decision.
Recent data shows a drastic decline in Saskatchewan’s canola exports to China, underscoring the economic repercussions of the trade dispute. Ontario Premier Doug Ford, in contrast to Kinew’s stance, emphasized the importance of maintaining the electric vehicle tariff amidst efforts to secure a new trade agreement with the U.S., without addressing the canola tariff in his communication with Carney.
