Manitoba’s Premier, Wab Kinew, is urging the Prime Minister to eliminate Canada’s 100% tariff on Chinese electric vehicles in exchange for China lifting its tariffs on Canadian canola and pork. Kinew, in a letter to Mark Carney, expressed concerns about the negative impact of the tariffs, particularly on Western Canada. He highlighted that China’s retaliatory tariffs have significantly affected canola prices and caused a $19 million annual loss for a Manitoba pork producer.
The electric vehicle duty was imposed by Canada last year in alignment with the United States to safeguard its automobile industry. Saskatchewan’s Premier, Scott Moe, previously advocated for removing the tariff but emphasized the need to maintain good relations with the U.S. Kinew emphasized the urgency of resolving the trade dispute, stating that the longer the tariffs persist, the greater the harm to Prairie producers.
Kinew referenced the Chinese ambassador’s willingness to lift tariffs on canola and pork if Canada removes the tax on Chinese electric vehicles. He urged Carney’s government to seize this opportunity. The ambassador argued that Canada’s tariff on Chinese EVs violates WTO rules and removing it would reinforce Canada’s commitment to a rules-based international trade order.
China currently imposes high tariffs on Canadian canola and pork products, with Ottawa accusing Beijing of unfair trade practices in the electric vehicle sector. The review of the 100% tariffs on Chinese electric vehicles, which came into effect on October 1, 2024, is ongoing, with no specified timeline for its conclusion. Saskatchewan’s canola exports to China have significantly declined, emphasizing the economic repercussions of the trade dispute.
While Ontario Premier Doug Ford supports maintaining the tariff to protect Canada’s auto industry amid trade negotiations with the U.S., Kinew and other Prairie leaders are pressing for a resolution to alleviate the impact on Canadian agriculture.