China makes request to WTO in its dispute over Canadian EV and steel tariffs

China has submitted a request to Canada for consultation at the World Trade Organization on additional tariffs it has imposed on Chinese electric vehicles as well as steel and aluminum products, the Commerce Ministry said on Friday.

"On Sept. 6, China lodged a request for consultations with Canada at the WTO regarding Canada's additional tariffs on electric vehicles and steel and aluminum products," a statement from the ministry said.

"Canada has disregarded WTO rules and violated its commitments within the WTO by proposing to impose additional tariffs of 100 per cent and 25 per cent."

"China urges Canada to abide by WTO rules and immediately correct wrongdoings," the statement concluded.

WATCH | Breaking down the reasoning, and timing, for Canada's move:

The North American fight against cheap Chinese EVs, explained | About That

3 months ago

Duration 9:04

Canada is stepping in line with the U.S. and imposing 100 per cent tariffs on all electric vehicles coming from China to combat the "unfair advantage" it has in the global marketplace. About That producer Lauren Bird explores why North America is closing the door on a massive source of cheap electric vehicles and why experts say consumers will pay the price. CORRECTION: At 1:47 in this video, we state that the cheapest Tesla on the market as of Aug. 28, 2024, in the U.S. is a Model Y for about $45,000 USD. In fact, the cheapest Tesla you can buy in the U.S. without a federal tax credit is the Model 3 Rear-Wheel Drive for $38,990.

Prime Minister Justin Trudeau announced in August that the Canadian government would apply a 100 per cent surtax on all Chinese-made EVs, effective Oct. 1. The tariff will apply to electric and certain hybrid passenger automobiles, trucks, buses and delivery vans.

The Canadian government, as with some of its allies, has rationalized the measure as a way to compete against the heavy subsidies China offers throughout its EV supply chain, where cars are manufactured with labour and environmental standards not as rigorous as in the West.

Canadian imports of automobiles from China to its largest port, Vancouver, jumped 460 per cent year-over-year to 44,356 in 2023, when Tesla started shipping Shanghai-made EVs to Canada.

Ottawa has earmarked tens of billions of dollars to support the construction and production of EVs in Canada.

U.S. President Joe Biden in May announced a suite of tariffs on Chinese goods, including a quadrupling of tariffs on electric vehicles to 100 per cent. A Chinese commerce ministry spokesperson, calling for an end to all American tariffs on Thursday, said they were "adding nsult to injury."

The European Union has imposed tariffs on Chinese-imported EVs up to 36 per cent, depending on the manufacturer.  

The Current19:22Canada and China are in a tariff tit for tat

Ottawa slapped big tariffs on Chinese-made EVs last month, and now Beijing has announced an anti-dumping probe of Canadian canola. Guest host Rebecca Zandbergen looks at what this all means for Canadian producers — and the country’s already fraught relationship with China.

China said earlier this week that it plans to start an anti-dumping investigation into canola imports from Canada, as well as some Canadian chemical products. More than half of canola produced in Canada makes its way to China, the world's biggest oilseed importer.

In a trade dispute five years ago that lasted several months, China blocked canola imports from two Canadian companies, which some industry analysts say cost the Canadian canola sector up to $2.4 billion.