China has threatened Canada to retaliate with countermeasures after Ottawa announced on Monday that it will levy a 100 percent tariff on imports of electric cars from China starting on October 1.
“China will take all necessary measures to safeguard the legitimate rights and interests of Chinese enterprises,“ the Chinese embassy in Canada said in a statement released on Monday evening.
Beijing accused Ottawa of violating the World Trade Organization’s (WTO) rules and said “this move is typical trade protectionism and (a) politically-motivated decision.“
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It said the Canadian government is acting against its own citizens’ interests and the interests of tackling climate change.
The Canadian move mirrors that of the U.S. government, which imposed additional tariffs of 100 per cent on electric cars from China in May.
The European Commission followed suit in June with its own plans, which provide for different tariffs depending on the Chinese manufacturer.
There is concern in the United States, Canada and Europe that cheap Chinese electric vehicles will flood their markets and drive local manufacturers and suppliers out of business.
They have argued that Chinese firms benefit from a government-imposed policy of overcapacity and laxer standards for the protection of workers and the environment.
It is virtually impossible to buy Chinese electric vehicles in the United States and Canada.
