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© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.Canada imposes 100% tariff on imports of Chinese-made electric vehicles, matching the US
By ROB GILLIES TORONTO©2024 GPlusMedia Inc.
37 Comments
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JeffLee
While I'm wary about buying a Chinese vehicle, I must point out that today's North American car market is horrendous. The US and Japanese carmakers have nearly abandoned the efficient and affordable subcompact models, like the Fit, Volt and Neon, and instead replaced them with bigger and bigger SUVs, in addition to the gargantuan pick-up trucks.
Consumer choice has become extremely limited and overpriced. No doubt the Canadian and US govt's fear than once exploited consumers set their eyes on the BVD Seagull and its price tag, it will sanyonara to large segments of the market for the US and Japanese carmakers.
deanzaZZR
Just make them a (large) state at this point. According to the quoted expert Canada has no agency in the matter.
Sad
Banthu
Reduce emissions!
Green this, sustainability that.
Make the kids worship SDGs... for the planet.
It's all a big lie and they obviously know it and this is proof.
Mr Kipling
Can't compete so slap on a tariff. China should reply in kind.
GBR48
Great that China is subsidising green tech, whatever its reasons. It is the only way of affording a fast green transition there and in the West. But the US is in charge of the West, and if they say no cheap green, it won't happen. We may as well all just carry on as normal.
2 Year Old
Chinese cars are flying out of the car yards in Australia these days after a very slow start at decade ago when quality wasn’t quite up to par.
quercetum
Governm subsidies for EV’s and semiconductor chips are not allowed in the U.S. and Canada apparently.
deanzaZZR
See the Inflation Reduction and CHIPS Acts.
BgirlKai
Really?
Here is the list of the top selling cars in Australia
Ford Ranger
Toyota HiLux
Toyota RAV4
Mitsubishi Outlander
Tesla Model Y
Isuzu D-Max
Mazda CX-5
Ford Everest
Toyota Corolla
Toyota Camry
Where are the chinese??????
https://www.canstarblue.com.au/vehicles/top-selling-cars/
Eastmann
well not so smart move as every action will be followed by reaction.
wait for chinese steps as soon as 1-2-3
its pathetic while you cant compete with chinese and lagging behind you impose just 100% tariffs...
deanzaZZR
Chinese EVs seem to be selling pretty well. Chinese brands include BYD, MG, Volvo and Polestar.
https://www.carexpert.com.au/car-news/vfacts-australias-best-selling-evs-in-2024-so-far
Sh1mon M4sada
https://www.carexpert.com.au/car-news/byd-sets-new-sales-record-in-australia
I don't know about Chinese autos in general, but BYD is certainly creating a lot of (negative) attention not just in Australia but around the world.
China's local governments are some of the most heavily indebted anywhere, but they are expected to continue subsidising the auto sector. The CCP controls cost of money, capital controls, and amount of money circulating, yet they are turning a blind eye to auto sector distortion. So despite the CCP's stated intention of common prosperity, they are hell bent on making average poor Chinese citizen pay to propup auto tycoons, some of whom are already extremely wealthy eg Xiaomi founder.
Any country that doesn't stop this massive global market distortion will see their own auto eco-system evaporate in a few short years, AND they will also help to impoverish Chinese people.
Sh1mon M4sada
It's more pathetic when people call it 'compete' when even in China's own market, it's causing shrinkage in the autosector (involution) 内卷. This is not competition, this is the CCP mismanaging an important sector, first in China, then overseas.
https://www.digitimes.com/news/a20240612PD219/china-ev-price-war-involution.html
The mismanagement has happened in other sectors too. Property in China is now totally buggered with more apartments and housing enought to house 4 billions people sitting empty, and borrowers loosing 75% equity in their purchasers. They exported the problem to HK (at the old airport precinct), Malaysia's (empty) Forest City, and Cambodia's Sianoukville.
https://asia.nikkei.com/Business/Markets/Property/Chinese-exodus-leaves-Cambodia-boomtown-with-500-ghost-buildings
https://foreignpolicy.com/2024/03/18/malaysia-china-real-estate-countrygarden-forestcity/
https://www.bloomberg.com/news/articles/2024-08-26/hong-kong-property-market-slump-exposed-by-kai-tak-airport-s-fall?srnd=phx-economics-v2
If Japan doesn't follow USA, Canada, EU, it will be a dumping ground for China's EVs, and market distortion will ensue.
Sh1mon M4sada
That's the problem precisely, but why? Heavy, extreme subsidies, next to no cost of capital, and next to no risk of loosing capital. All paid for by average working Chinese citizens. The CCP are resorting to fining people now just to raise capital.
Sh1mon M4sada
Chinese people are the ultimate looser.
https://www.business-standard.com/world-news/strained-chinese-cities-unable-to-raise-funds-to-pay-home-buying-subsidies-124043000094_1.html
If subsidies in property is not sustainable, how would cars be any different? Unless you export the problem...
In fact it's so bad, they are fining Chinese citizens just to pay for their mismanagement.
https://asia.nikkei.com/Economy/Cash-strapped-Chinese-cities-bring-in-over-50bn-from-fines
Canada, US, EU doing more average Chinese tax payer than CCP will ever do.
Fighto!
The developed world does not want to compete with $3 per hour slave wages as paid in Communist China.
Sh1mon M4sada
Some would be lucky to be getting $3. Soon they may not even be able to work.
https://www.bloomberg.com/news/articles/2024-07-11/less-than-20-chinese-ev-brands-to-be-profitable-by-decade-s-end
...and straight from company video, one of the CCP card carrying darling '100% automation'. The only thing not automated is the subsidies and risk free capital, because it's paid for by Chinese tax payers.
https://youtu.be/yezR-mH12xs?si=_ut1cjHNy7TsRR5e
Fighto!
Not sure the Japanese carmakers will be losing sleep over this "Seagull" vehicle.
I just checked the stats - a 0-100km/h time of 14 plus seconds! Corollas were doing faster than that in the late 70s. Perhaps in Shanghai or Beijing that is fine, but in big countries with big distances - that is not fine at all.
And now the benefit of selling below cost price has gone, BYD is going to have a problem on their hands with the pricing.
quercetum
BYD will do just fine. You’re getting a good EV even with 100% tariff added.
BYD is a Warren Buffett-backed company launching two new brands in 2023.
U8 SUV maximum range 1,000 km (620 mi) Top speed is 200 km/h (124 mph), and 0–100 km/h (0–62 mph) acceleration is at 3.6 seconds.
serendipitous1
Don't mind buying a Chinese-made room fan or other cheap appliance (because there's not much choice), but not Chinese cars like BYD even if they are cheaper. Why support the CCP more than we have to?
quercetum
No, the developed world, including your country, wants to compete with the wages in China. They outsourced to China to take advantage of the $3 plus minimum wage.
China continues to be the world’s manufacturer. There’s no way around China in the near future, at least not for Japan or the US.
quercetum
China is the future market of EVs. China sold close to 1.5 Trillion CNY of EVs in 2023 ($ 200 Billion) and is estimated by 2030 to be selling close to 10 Trillion CNY of EVs ($ 1.55 Trillion).
Chinese EVs are doing very well indeed. Taipei can use cleaner air.
Agent_Neo
As I said before, I have no intention of buying any wiretapped household products made in China, nor do I intend to drive an EV that gets cremated in three seconds.
If you value your life, you should spend a little money.
When you die, all that's left is ashes, right?
Rather than imposing tariffs like the US, Canada, and EU, I hope Japan will take the lead in banning Chinese-made EVs. They are a danger to other cars as well.
quercetum
So China is subsidizing its EV industry. Aren’t Western countries doing the same?
Canada has spent a lot in investing in its domestic EV industry. It stands to reason they’ll want to protect it.
Why not spend more and subsidize more?
No matter how affordable Chinese EVs are, no one is going to spend $20,000 on a car unless it meets quality expectations. No one is going to buy a Chinese EV unless it is a quality car.
Do Biden and Trudeau not have faith in the quality of their domestic EV industry?
The Chinese state subsidies have been over stated. Monkey alone is not going to defeat the competition. Little has been discussed here about the technology and the supply line.
Chinese news often mentions about newer and better batteries. The battery manufacturers are in China. The materials to make the batteries are also refined in China. On top of this we hear reports of 1000 km range and charging times of 5-10 minutes. How long does it take to fully charge your phone? It might take longer than a Chinese 600v charger. Does your country even have 600v chargers available?
Speaking of chargers, unless EV charging is made profitable like gas stations, EVs aren't going to be dominating sales in Europe or the US in the next few years.
quercetum
The tariffs are there because people will be buying them. They won’t be buying them unless they are quality cars. If not, there would be no need for tariffs.
Chinese EVs have entered Japan’s auto market 2023 I believe.
Peter Neil
tesla wouldn't exist today if it weren't for government $7,500 tax credits and sales of government pieces of paper called emission credits to other automakers.
yoshisan88
BgirlKai
Well. Here are some facts:
First, the fifth best selling car in Australia, the Tesla Model Y are manufactured in China. Tesla do not ship Model Y from their German or US factories to Australia.
From the internet:
China overtakes Korea and is closing in on Japan and Thailand with almost 200,000 sales in Australia last year.
China overtook South Korea to become the third most popular country of origin for new vehicle sales in Australia in 2023, boosted by new brands and established car-makers that are now sourcing cars – increasingly EVs – from the Asian powerhouse.
However..
With Japanese-built cars at 345,071 sales in Australia last year, and Thailand at 264,253, there’s still some way for China to go.
yoshisan88
LOL. That is true maybe 10 years ago. Do you think Aussie here who can afford to buy brand new cars do not care about their safety? The majority of those new Chinese cars sold here have 5 star ANCAP safety rating.
kaimycahl
Producra or anything made in China will last only as good as it looks and looks don't go to far so go figure its crap!
Peter Neil
shipping to australia from europe costs much more than from china.
i thought model y production is moving out of china?
china is australia’s #1 trading “partner” so it’s walking between the lines of good guy/bad guy.
it’s all just protectionism by canada and others anyway, everyone does it. when you can have a 100% tariff and still be $20,000-$30,000 less than domestic products, it’s brings out the lobbyists like locust.
byd is looking at building in mexico, so both canada and the u.s. are frantically threatening mexico in back rooms right now to stop that.
Sh1mon M4sada
There's no comparison when capital is virtually cost free and risk free and as witnessed by the early EVs graveyard in China quality free as well. Plenty of examples of mismanagement by the CCP distorting markets in China and abroad.
You don't protect yourself against China, you're fair game. Remember when China food exports were deemed substandard and contaminated? China told trade partners it's up to you to check, you're the buyer.
Don't even think of this as China v rest of the world, this is CCP cronies and favoured comrades on the attack against Chinese people first, then onto rest of the world.
Sh1mon M4sada
...and China is using it to push theur way into Australia's orderly market. Australia under Labour, like New Zealand under Labour is a total and complete push over. CCP say bend over, they both say me first please.
Australia recently took China to the WTO, on the eve of a win, certain win, they folded, kneecapping 17 nations who joined in to support China. Bet that went down well with partners and allies, NOT.
Sh1mon M4sada
https://asia.nikkei.com/Opinion/Australia-s-Albanese-paid-a-high-price-for-his-trip-to-China
Clearly, Canada relative to Australia says, you give China a chance, you kneecap yourself and your allies. Next time NO ONE will support you.
Marles, Wong, Albanese far too afraid of being flamed by Labour elder Keating.
JeffLee
So you're going to have to explain why Hyundai and Kia have been North America's fastest selling brands. They've had a litany of disasters since their arrival, like new engines blowing up, while their dealers have a nasty reputation of refusing to acknowledge mechanical problems and warranty coverage. They sell because they're cheap and look good.
kurisupisu
Canada has only 38,000 people in car production.
Why is Trudeau not allowing Canadians to buy cheaper, cleaner vehicles for a cheaper price?
Seems illogical to me…
MkoreaMwafrika
Heck, we produced more cars than our 1.4 billion folks can possibly buy, so it's about time the EU, Canada, Japan, the US, and ALL who care about cheap, clean EVs turn to China to help save Mother Earth from pollution and carbon dioxide. We are doing this for all of you -- the Global Commons -- and not to support our domestic labor market or to promote our exports.
Clearly, it's the West that needs vibrant China, and not vice versa!
Agent_Neo
EVs are environmentally friendly? As always, it makes me laugh.
Could you tell me how you dispose of those batteries?
So you just bury the inconvenient ones in the ground like trains and pretend you never saw them, right?
Isn't it ridiculous that China is selling off EVs for money, even though they can't even dispose of solar panels that have outlived their useful life, and they haven't even established a method for disposing of EV batteries?
Well, I suppose the people who buy them are a bit strange, too.
If you want to be environmentally friendly, it's best not to drive a car, right? lol