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\n\t\t\t\tCanadian canola fields. Credit: Canola Council of Canada\t\t\t<\/p>\n
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\n\t\t\t\tCanadian canola fields. Credit: Canola Council of Canada\t\t\t<\/p>\n
Canada is \u201creviewing\u201d its current 100% tariff on Chinese EVs, which could potentially give another entry point for the inexpensive<\/a>, advanced<\/a> vehicles into the North American market.<\/p>\n The strange part? The review is being pushed for, mainly, by the premiers of right-leaning provinces. And it has everything to do with your cooking oil.<\/p>\n The news of the review came yesterday from the National Post, who confirmed with Canada\u2019s national finance minister that \u201cofficials are currently undertaking work on this review, including an assessment of China\u2019s policies and trade practices, and whether the scope of the surtaxes, as well as the surtax rate, remain appropriate.\u201d<\/p>\n Canada currently has a 100% tariff (surtax) on Chinese EVs and a 25% tariff on Chinese steel and aluminum, implemented last October. Canada\u2019s tariffs came after similar tariffs implemented by US President Biden<\/a>, though they were justified by claiming that China engages in unfair competition in EVs.<\/p>\n \tAdvertisement – scroll for more content<\/p>\n The country does have a significant auto industry, with about 10% of Canada\u2019s exports consisting of cars, trucks and the parts and accessories for each. This auto industry is heavily tied with the US auto industry, which is centered in Detroit, a literal stone\u2019s throw away from the Canadian border.<\/p>\n As a result, Canada followed the US\u2019 lead with tariffs, recognizing that our two countries, historically tied together by the close trade and cultural relationships across the longest border on Earth should be on the same page about an industry that is shared and important to each of us (nevermind that the US tariffs were dumb to begin with<\/a>).<\/p>\n A souring US-Canada relationship<\/p>\n But since then, things have changed. A contentious election in the US led to the dumbest person on the planet squatting in an office that he is Constitutionally barred from holding<\/a>, and after that election the ignoramus in question illegally<\/a> imposed even dumber tariffs<\/a> on China and the rest of the world.<\/p>\n The same ignoramus also made numerous threats against Canada\u2019s sovereignty and targeted the country with tariffs despite the close relationship between the US and Canada.<\/p>\n This caused disruption in Canada\u2019s auto industry, including immediate job losses <\/a>and a scramble to beg for exemptions<\/a> for the industry that has long-benefitted from free cross-border movement of supplies. (Canadian Prime Minister Mark Carney today cited US tariffs as his reason for delaying Canada\u2019s EV transition<\/a>, showing how the actions of US republicans aren\u2019t just poisoning Americans<\/a>, but Canadians as well.<\/p>\n All told, all of this nonsense had the primary effect of swinging a sure-bet election for Canada\u2019s right-wing into a solid win for the incumbent Liberal party<\/a>.<\/p>\n And it has left Canadians thinking more about their own national identity, and searching to establish some independence<\/a> from the United States of America\u2019s whims on the International stage.<\/p>\n It\u2019s all about cooking oil<\/p>\n With the US-Canada relationship already soured, China struck a characteristically surgical blow. In response to Canada\u2019s tariffs on EVs, China announced it would impose heavy tariffs of 76% on\u2026 canola. Yes, the thing that\u2019s in your cooking oil.<\/p>\n Canada is the world\u2019s top producer of canola, ahead of China. And China is the world\u2019s top consumer of canola (though US is Canada\u2019s largest buyer of canola). So, China\u2019s move removes a big market for Canadian farmers and disrupts the global canola market significantly. It\u2019s estimated this has cost Western Canadian farmers nearly a billion dollars<\/a> already (China did a similar move in 2018 with a soybean tariff on the US<\/a>).<\/p>\n Now here\u2019s the rub: Western Canada is the more rural part of the country, with giant plains provinces like Saskatchewan and Alberta whose primary industries are farming and oil. That\u2019s where the canola is grown. These provinces, predictably, are pretty conservative. And they\u2019re mad about these tariffs.<\/p>\n Canada\u2019s right-wing leads charge for Chinese EVs<\/p>\n And so, the right-wing premiers of both Saskatchewan<\/a> and Alberta<\/a> have recently demanded that the Canadian government remove tariffs on Chinese EVs, in the hope that it would get China to remove the tariffs that are currently ruining Canada\u2019s canola farmers. Saskatchewan\u2019s premier is even heading to China right now<\/a> to negotiate.<\/p>\n From the US, this seems counterintuitive \u2013 why would the right-wing be asking for more EVs, when the right wing in the US is so stupidly against improving our transportation options<\/a>.<\/p>\n And it even seems counterintuitive from the Canadian perspective, as the provinces of Alberta<\/a> and Saskatchewan<\/a> both have ridiculous registration taxes<\/a> for electric cars, where EVs suffer high opposition due to the prominence of the oil industry in the each of them. Alberta, in particular, is often referred to as the \u201cTexas of Canada,\u201d and has a brewing separatist movement<\/a>, some members of which want Alberta to join the USA<\/a>. So how\u2019s that for an inversion of expectations.<\/p>\n But as a result of the US\u2019 haphazard tariff nonsense, its own allies in Canada (even specifically those in the Canadian right wing) have been pushed towards a deeper relationship with China, with Canadian PM Carney stating this week \u201cthere may be areas where\u2026 we can expand the commercial relationship with things that China does well.\u201d<\/p>\n And the charge by right-wing premiers seems to be working. After yesterday\u2019s announcement of the Canadian federal government\u2019s \u201creview\u201d of Chinese EV tariffs, and the impending trip to China by Canadian trade officials and Saskatchewan Premier Scott Moe, China delayed the imposition of canola tariffs<\/a> just today.<\/p>\n So, Canadian farmers get some breathing room \u2013 and depending on the results of the tariff \u201creview,\u201d if they end up getting access to cheap Chinese EVs, they might breathe more freely in more ways than one<\/a>.<\/p>\n The 30% federal solar tax credit is ending this year. If you\u2019ve ever considered going solar, now\u2019s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out\u00a0EnergySage<\/a>, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it\u2019s free to use, and you won\u2019t get sales calls until you select an installer and share your phone number with them.<\/p>\n Your personalized solar quotes are easy to compare online and you\u2019ll get access to unbiased Energy Advisors to help you every step of the way.\u00a0Get started here<\/a>.<\/p>\n
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