Ontario job protection hinges on Chinese electric vehicle tariffs, according to the Ford administration's declaration to Ottawa.
In a significant move, Ontario Premier Doug Ford has written to Prime Minister Mark Carney, requesting that tariffs on Chinese-made electric vehicles (EVs) not be dropped. This move, however, does not have nationwide support among Canadian provincial leaders.
The tariff, initially implemented in 2024, is critical to protecting over 157,000 direct jobs in Ontario and hundreds of thousands of indirect jobs across the country. It is seen as a crucial measure to safeguard Ontario's electric vehicle industry, a fledgling sector with high growth potential. The government had anticipated thousands of direct manufacturing jobs and new positions at spinoff companies as a result of this industry's growth.
Ontario's stance puts it in opposition with Saskatchewan, where retaliatory Chinese tariffs on canola are causing concern for the agriculture industry. The Chinese government imposes a 76% tariff on Canadian canola seed imports and a 100% tariff on canola oil, meal, and peas. Saskatchewan Premier Scott Moe recently traveled to China with Carney's parliamentary secretary Kody Blois to discuss the trade dispute. Saskatchewan Premier Moe also met with Prime Minister Carney on Tuesday to discuss China's canola tariffs.
The other provincial premiers in Canada have shown mixed reactions. Some have expressed support for Ford's position on maintaining the 100% tariffs on Chinese-made electric vehicles, while others have raised concerns about potential trade repercussions and impacts on consumers.
Ford's letter to Carney does not mention the canola tariff issue, focusing solely on the importance of protecting Ontario's electric vehicle industry. The impact of tariffs from the United States on vehicles and the slowing global demand for electric vehicles has put the plan in jeopardy. While a massive battery plant in St. Thomas, Ont., is going ahead, others have paused or pulled back.
The global battle for the future of the electric vehicle market is at stake, with the tariff on Chinese EV imports playing a significant role in Ontario's strategy to secure its position in this competitive landscape.
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