China has filed a consultation with the World Trade Organization (WTO) against Canada’s decision to impose new tariffs of up to 100% on Chinese-made EVs, steel and aluminium.
China’s Ministry of Commerce labels the tariffs as "trade protectionism". The ministry says the measures distort global supply chains and urges Canada to withdraw them, stating that they violate Canada's WTO commitments.
"Canada has disregarded WTO rules and violated its commitments within the WTO by proposing to impose additional tariffs of 100 percent [on EVs] and 25 percent [on steel and aluminium imports]," the ministry said.
China strongly disapproves of Canada's action, which “severely undermines” the rules-based international trading system and disrupts global industrial and supply chains in the EVs, steel and aluminium sectors.
According to the spokesperson, China has called on Canada to adhere to WTO regulations and promptly correct its mistaken actions as a firm advocate and significant participant in the international trading system.
In late August, Canada announced its plan to impose 100% surtaxes on Chinese-made EVs and 25% on steel and aluminium products, following the US and EU.
The tariff will apply to specific hybrid passenger vehicles, as well as trucks, buses and delivery vans. This is in addition to the current 6.1% tariff on Chinese EVs. On 15 October, a new 25% duty on Chinese steel and aluminium will come into force.
