TMTPost --  China has lodged a World Trade Organization (WTO) dispute complaint against additional tariffs on Chinese-made electric vehicles (EVs) and steel and aluminum products imposed by Canada, a spokesperson of the Ministry of Commerce of China (MOFCOM) told reporters Tuesday.

Credit：Xinhua News Agency

Besides the complaint, China has also opened an anti-discrimination investigation into Canada's restrictive measures in accordance with the law, the spokesperson said, according to a statement on MOFCOM website. The spokesperson urged Canada to view bilateral economic and trade cooperation rationally and objectively, respect facts, abide by the WTO rules, and not go further and further down the wrong path. “China will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises,” the spokesperson vowed.

China firmly opposes Canada’s move as it goes against the principles of market economy and fair competition, seriously damage the normal economic and trade cooperation between Chinese and Canadian companies, gravely impact China-Canada economic and trade relations, and disrupt and distort the global industrial chain and supply chain, the spokesperson said.

The warning came as the additional tariffs on EV imports from China went into effect in Canada on October 1, and the Canadian government announced final list of steel and aluminum products made by China that will be subject to extra tariffs from October 22.

Canada announced on August 26 it will be implementing a 100% surtax on all Chinese-made EVs, effective October 1, 2024, and a 25% surtax on imports of steel and aluminum products from China, effective October 15, 2024. Canadian auto workers and the auto sector currently face unfair competition from Chinese producers, who benefit from unfair, non-market policies and practices, the Department of Finance of Canada said in its press. China’s intentional, state-directed policy of overcapacity and lack of rigorous labour and environmental standards threaten workers and businesses in the EV industry around the world and undermine Canada’s long term economic prosperity, according to the department.

The latest tariffs were on heels of new tariffs on Chinese-made EVs taken by the U.S. and European Union.

The White House announced in May that U.S. President Joe Biden directed his Trade Representative to raise tariffs under Section 301 of the Trade Act of 1974 on $18 billion of imports from China. The direction leads to sharp increases in tariffs across strategic sectors such as semiconductors and impose new tariffs on cranes and medical products. The tariff rate on EVs under Section 301 will increase to 100%, quadrupling the current tariff of 25%.

The European Commission said on July 4 it imposed provisional countervailing duties of up to 37.6%, on top of the ordinary BEV import duty of 10%, on imports of battery electric vehicles (BEVs) from China. The Commission concluded through an anti-subsidy investigation that the BEV value chain in China benefits from unfair subsidization, which is causing a threat of economic injury to the European Union BEV producers. The regulatory body proposed to add up to 36.7% to the current 10% duty faced by Chinese exporters, modestly lowered from the initial maximum planned duty of 37.6% set in the start of July. If a qualified majority of 15 EU members representing 65% of the EU population votes in favor of the final regulation, the tariffs could become law by October 30 and remain in effect for five years, with the option extensions upon review.