“Tariff Wars, Begun They have.”
For Star Wars fans, you’ll have read that title in Yoda’s voice. For non-Star Wars fans, you’ll be scratching your head at our grammar…
In any case, Canada has begun applying new tariffs on Chinese-made batteries (for EV’s) and critical minerals.
A 25% tariff on Chinese steel and aluminum products comes into effect October 15th 2024.
Canadian tariffs are pretty much in line with similar tariffs on Chinese goods entering the U.S.
Canadian Tariffs Also Forcing Companies Out of Canada
Tariffs are general designed to protect domestic industries, however, as Canada’s tariffs on Chinese goods increase and become stricter, the negative side-effect is it’s forcing companies to move out of Canada.
Case-in-point, mining company, Solaris has decided to move its headquarters out of Vancouver into Ecuador due to an investment from Chinese investors that fell apart due to the restrictions on Chinese investment into domestic companies in the critical minerals industries.
Bank of Canada Governor Tiff Macklem has already warned officials of potential negative effects of too many tariffs on one of Canada’s largest trading partner.
