Canada Favors Chinese Electric Cars, Donald Trump Is Furious

KatadataOTO – China continues to push the expansion of its cars to several countries. As just happened, namely Canada.

The two countries have forged a trade agreement. Canada cut the import tariff on Chinese electric vehicles from the original 100 percent to just 6.1 percent.

“All these projects will benefit the development of Canada's Electric Vehicle (EV) industry,” said Wang Di, China's Ambassador to Canada, in Carscoops on Thursday (01/29).

Moreover, Wang Di believes the cooperation they have forged will bring many positive impacts.

Photo: Special

Such as helping job growth, because BYD, Geely and their peers plan to invest in Canada.

It also helps consumers to purchase high-quality electric cars, and offers more affordable product prices.

“A hallmark of practical cooperation between China and Canada is mutual complementarity and profitability,” he added.

Therefore, Wang Di hopes Canada can provide a fair and non-discriminatory investment environment.

Thus both China and Canada truly reap the benefits of the bilateral cooperation.

“If Chinese companies come to Canada to cooperate with Canadian partners for investment, plant openings, or joint ventures, all these projects will be mutually beneficial,” Wang emphasized.

Donald Trump Flare-up

On the other hand, the collaboration between the two countries has drawn sharp criticism from Washington, especially Donald Trump, the President of the United States.

Even the top figure in Uncle Sam's country immediately began issuing threats.

He intends to raise import duties on goods from Canada to 100 percent.

“China will devour Canada alive, completely destroying it,” Trump concluded.

Trump suspects that Mark Carney, Canada's Prime Minister, wants to make his country a transit point for Chinese electric cars before they enter the United States.

For information, China is allowed to import 49,000 electric cars into Canada each year. That number is set to increase to 70,000 units.

Photo: Wuling

This is in return for China's tariff reductions on imports of pork, seafood, and canola oil from Canada.

The Canadian Vehicle Manufacturers share a view similar to Donald Trump's. Collaboration with China could damage the automotive industry in their country.

It poses a risk to the future of an integrated automotive supply chain in North America, from Ford and General Motors to Stellantis.