Ontario Premier Ford issued a statement on Thursday urging the federal government to impose a 100% tariff on electric vehicles produced in China. He also warned that if this action is not taken, the employment in Ontario could be at “risk”.
Last month, the United States announced plans to increase tariffs on products manufactured in China, especially targeting electric cars with a 100% tariff. Some European Union member countries have indicated that the EU may follow suit.
The EU has already felt the impact of Chinese electric cars on the industry. The European Transport and Environment Association stated that Chinese-made electric cars accounted for 19.5% of the market share in Europe in 2023, and it is expected to increase by 5.5% this year, reaching 25%. Studies by the association have shown that by 2025, at least 11 new Chinese-made electric vehicles will be introduced in Europe.
A small, affordable Chinese electric car named “Seagull” has raised concerns among American car manufacturers and politicians. The price of this car in China is around $12,000, with the shorter-range version priced at less than $10,000.
In the statement released on Thursday, Ford said: “I urge the federal government to catch up with or exceed the tariffs imposed by the United States on products imported from China, including imposing tariffs of at least 100% on Chinese electric cars.”
“China (CCP) is capitalizing on its low labor standards and dirty energy advantage to artificially introduce cheap electric cars into the market. Unless we take swift action, employment opportunities in Ontario and Canada will be at risk,” he said.
Ford mentioned that over the past four years, Ontario has attracted $43 billion in investments in the electric vehicle and battery manufacturing sectors, securing hundreds of thousands of high-paying jobs, which he referred to as a “collective achievement.”
“We must not take the progress we have made for granted,” he said.
“Now is the time for us to deepen cooperation with our American partners and strengthen the local U.S.-Canada supply chain,” Ford said. “It is time to protect the hard-earned quality job positions in Ontario and Canada by imposing tariffs on Chinese imports similar to those of the United States.”
Currently, Chinese brands have a small market share in the Canadian electric vehicle market, but the Canadian Vehicle Manufacturers Association (CVMA) has warned that Chinese-made electric cars could “soon” flood the Canadian automotive market.
Canadian Prime Minister Trudeau said last month in a media briefing that the government is “closely” monitoring the developments in the United States. However, he did not make any commitment to imposing equivalent tariffs.