Â鶹ӰÊÓ

Skip to main content

China retaliates over EV tariffs with anti-dumping probe into Canadian canola imports

Share
OTTAWA -

China has announced an anti-dumping investigation into Canadian canola imports in response to Canada planning to impose tariffs on Chinese-made electric vehicles, steel and aluminum.

In a news release Tuesday, China's Ministry of Commerce said it is launching an anti-discrimination investigation into the tariffs and an anti-dumping probe into Canadian canola imports as well as certain chemical products.

Prime Minister Justin Trudeau announced Aug. 26 that Canada will impose a 100 per cent tariff on Chinese EVs and a 25 per cent tariff on steel and aluminum.

The tariff on Chinese EVs will take effect Oct. 1, while steel and aluminum tariffs will come into place Oct. 15.

Finance Minister Chrystia Freeland cited unfair trading practices but also "abysmal" environmental and labour standards that she said allow China to unfairly price and dump products into the market at a huge cost to the environment and workers. The tariffs were announced following a month-long consultation process, which is required under Canadian law.

The move by the Liberal government follows similar tariffs announced by the U.S. in the spring, though those have yet to take effect. Canada was under immense pressure to match the U.S. tariffs, pushed by industry groups including automakers, and steel and aluminum plants.

China says it is extremely dissatisfied with the Canadian tariffs and promises to take the case to the World Trade Organization.

"China's attitude is very clear and we will take all necessary measures to defend the legitimate rights and interests of Chinese companies," the ministry's release said in Mandarin. 

The Canola Council of Canada released a statement calling China "an important and valued market for Canadian canola."

"We are confident that an investigation into Canada’s canola trade with China will demonstrate alignment with and reinforce our support for rules-based trade," said Chris Davison, president and CEO of the council.

Statistics published by the council show China accounted for 75 per cent of canola seed exports from Canada between January and June.

China has targeted Canadian canola before. In 2019, it barred canola seed imports from two major Canadian companies, alleging it had detected pests in their shipments. The canola ban took place amid heightened tensions between the two countries following the Canadian detention of Huawei executive Meng Wanzhou at the request of the United States, and China's subsequent detention of two Canadian men. 

Canada launched a WTO challenge in 2020, but the review panel was suspended in August 2022, three months after China reinstated shipments of Canadian canola.

An RBC report released Tuesday said Canada's planned tariffs are expected to raise EV prices in the short term and raise costs on industries that use aluminum and steel. 

"Importantly, the Canadian move raises the risk of retaliation from Beijing, which could put exports of Canadian commodities at risk, as seen with the newly announced probe on Canadian canola exports," wrote RBC economist Salim Zanzana. 

The federal government has also announced a 30-day consultation period to consider the threat of Chinese imports in other sectors, including batteries and battery parts, semiconductors, solar products, and critical minerals.

Zanzana says the federal government is clearly trying to protect the investments it has made in partnership with the Ontario and Quebec governments in the EV supply chain, which total about $52 billion. 

"However, imposing new tariffs up the supply chains at this time — when most Canadian EV production capabilities still aren't operational — would lead to broader cost pressure in the short term given China's large presence in the global EV supply chain. It could also challenge one of Canada's climate targets of electric cars making up 60 per cent of new vehicle sales by 2030, and 100 per cent by 2035," the report said. 

This report by The Canadian Press was first published Sept. 3, 2024

— With a file from Nono Shen in Vancouver

IN DEPTH

Opinion

opinion

opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster

A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?

opinion

opinion Don Martin: How a beer break may have doomed the carbon tax hike

When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.

CTVNews.ca Top Stories

How to win the fight with kids over phone use

The end of the day — when school, extracurricular activities and homework are (hopefully) finally done — is the window that many kids have for downtime. It can be a struggle to convince them not to go on their phones.

Tattoos are becoming more common in today's society and, as a result, appear to be more acceptable in the workplace than they used to be.

Local Spotlight

Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.

Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.

An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.

They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.

A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.

Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.

The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.

The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.

It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.

Stay Connected