Manitoba Premier Wab Kinew has called on Canadian Prime Minister Justin Carney to remove the 100% tariff imposed on electric vehicles imported from China, warning that the measure has triggered a damaging trade conflict and is severely affecting Western Canada’s economy.
In his letter to the Prime Minister, Kinew stated that the tariff “has ignited a bilateral trade war, with especially harsh consequences for the western provinces.” He noted that China’s countermeasures have already led to a steep drop in canola prices and significant losses in Canada’s pork industry.
Kinew emphasized that the relationship between China and Canada is at “a critical juncture,” urging the federal government to “seize the opportunity” to stabilize trade relations. Earlier, Saskatchewan Premier Scott Moe had also publicly called for the removal of the EV tariff, citing that the province’s canola exports to China in August fell 76% year-on-year.
Federal Adjustments and Retaliation Measures
According to a Reuters report dated October 20, the Canadian government has quietly introduced tariff exemptions on selected steel and aluminum products imported from both the United States and China, in an effort to provide relief to domestic industries hurt by the ongoing trade dispute.
Since late last year, Canada has imposed a series of tariffs on U.S. and Chinese steel and aluminum imports. The levies on U.S. products were meant as retaliation for U.S. tariffs on Canadian metals, while those on China were widely viewed as Ottawa aligning itself with Washington’s trade actions.
China’s response came swiftly. In August, Beijing launched anti-dumping investigations into Canadian canola imports and imposed temporary duties requiring a 75.8% deposit on affected Canadian exporters. Additional tariffs were also placed on canola oil, seafood, and pork, further intensifying domestic pressure on the Canadian government from the agriculture sector.
Economic Strain and Shifting Trade Strategy
As both Washington and Beijing imposed tariffs on Canadian goods, Canada’s economy has come under mounting strain. Seeking to ease tensions with the United States, Prime Minister Carney has already rolled back several retaliatory measures enacted by his predecessor.
“We are now in the stage of negotiations,” Carney said last week, noting that Canada is aiming to secure tariff relief for key industries, including aluminum, steel, and energy. Ottawa also confirmed that it has no plans to impose further counter-tariffs on U.S. products.
However, this softer stance toward Washington has faced pushback at home. Catherine Cobden, CEO and president of the Canadian Steel Producers Association, expressed frustration that “U.S. producers were granted broad two-month tariff exemptions while our access to their market remains restricted.”
Efforts to Rebuild China Relations
In a parallel move, the Carney government has dispatched senior officials to engage in exploratory talks with China. Foreign Minister Anita Anand visited Beijing last week, in what Canadian media described as an attempt to rebuild strained diplomatic ties.
“Resetting relations with China will be challenging,” wrote The Globe and Mail, quoting analysts who said that while Carney hopes to persuade Beijing to lift restrictions on Canadian canola, his government remains unwilling to ease the import limits on Chinese electric vehicles — a key sticking point for Beijing.
Domestic Outlook: Rising Economic Pessimism
As trade tensions drag on, pessimism about Canada’s economic outlook is rising. A recent Bloomberg survey found that over half of Canadians expect the economy to weaken in the next six months. Policymakers reported that exporters in the steel and aluminum sectors are facing “particularly bleak prospects,” with some companies citing large-scale layoffs linked to tariff pressures.
Online, many Canadians have voiced frustration. As one commenter put it:
“Compared with the U.S. and China, Canada’s consumer base is small — the reality is, we simply don’t have much leverage in a tariff war.”
