The trade war between China and its BRICS partners and the Western alliance continues to gather pace.

In a decisive move to bolster its manufacturing sector, Canada is set to impose hefty tariffs on Chinese electric vehicles (EVs), steel, and aluminum. This bold policy, soon to be unveiled by Prime Minister Justin Trudeau, aligns Canada with Western allies in a broader economic pushback against China’s state-driven overcapacity.

The upcoming measures include a staggering 100% tariff on Chinese-made electric cars and a 25% levy on steel and aluminum imports. The decision, backed by Finance Minister Chrystia Freeland, signals a significant shift in Canada’s trade strategy.

The Canadian auto sector, deeply intertwined with the U.S. market, has been vocal in its demands for protection against what it sees as unfair competition from China. The government's plan to increase tariffs is seen as a direct response to these concerns, aiming to safeguard Canadian jobs and wages.

The move is not without precedent; the European Union has already proposed similar tariffs on Chinese EVs, though at lower rates. With the value of Chinese EVs imported into Canada skyrocketing to C$2.2 billion last year, the Canadian government is keen to prevent a further influx of low-cost vehicles that could disrupt the market.

Steel and aluminum producers in Canada, echoing the concerns of the auto industry, have long called for restrictions on Chinese imports, citing the detrimental impact of China’s industrial policies on local jobs.