U.S. Trade Chief Tai Welcomes Canada's New High Tariffs on Chinese Electric Vehicles, Metals

By David Lawder

WASHINGTON (Reuters) – U.S. Trade Representative Katherine Tai on Thursday strongly supported Canada’s decision to impose a 100% tariff on Chinese-made electric vehicles and a 25% tariff on Chinese steel and aluminum, as she finalizes planned U.S. tariffs at similar rates.

In a statement released by his office, Tai welcomed Canada’s decision to take strong action against China’s “state-directed, unfair and anti-competitive non-trade policies and practices that threaten the existence of our market-driven industries.”

She said it was an important step in ensuring Canadian workers and businesses can compete fairly in the electric vehicle, steel and aluminum sectors.

“We share Canada’s concerns about the PRC’s unfair and untrade-friendly policies and practices and its failure to uphold workers’ rights, enforce environmental protections and promote fair and market-oriented competition,” Tai said, using the acronym for the People’s Republic of China.

Canada announced Tuesday it would impose tariffs starting Oct. 1, including on electric vehicles made in China by U.S. company Tesla, to counter what Prime Minister Justin Trudeau called China’s intentional, state-led policies that have created excess capacity in those industries.

The move comes as the U.S. Trade Representative is expected to announce final plans by the end of August to implement tariffs on $18 billion of Chinese imports, including 100% duties on electric vehicles, 50% on semiconductors and solar cells, and 25% on lithium-ion batteries.

Many U.S. companies have called for tariff relief and expanded exclusions, but a U.S. official in Beijing told Reuters the Biden-Harris administration was expected to follow through on its well-communicated intentions on tariffs.

(Reporting by David Lawder; editing by Jonathan Oatis)