OPINION / OBSERVER
Following US’ protectionist policies, Canada is shooting itself in the foot
Published: Aug 28, 2024 12:18 AM
Illustration: Chen Xia/GT

Illustration: Chen Xia/GT

On the political stage, Canada often seems to trail behind the US. After the US government's announcement in May of imposing high tariffs on Chinese electric vehicles (EV) and steel, the Canadian government has now decided to follow suit.

On Monday, Canadian Prime Minister Justin Trudeau said Ottawa would impose a 100 percent tariff on imports of Chinese EVs and announced a 25 percent tariff on imported steel and aluminum from China. These measures align with the tariffs set by the US.

Zhou Rongyao, director of the Canadian Studies Center at the Academy of Social Sciences, told the Global Times that the recent imposition of tariffs is simply a way for Canada to demonstrate loyalty to the US, as it follows in the footsteps of the US, cheering on American decisions along the way.

Li Haidong, a professor at the China Foreign Affairs University, believes that Canada lacks independence in its foreign and security policies, particularly when it comes to its policies toward China, as Canada almost blindly follows the US. However, Canadian political elites are not sensitive to this issue; instead, they hold onto their inherent alliance mind-set and a sense of arrogant self-righteousness, willingly acting as followers of the US.

Canada's imposition of tariffs on China has drawn a response from the spokesperson of the Chinese Embassy in Canada. The spokesperson stated this move is typical trade protectionism and a politically motivated decision, which violates WTO rules.

Canada should take a look at what the US has gained by repeatedly wielding the tariff stick against China. In an op-ed entitled "The US protectionist craze hasn't done its economy any favors," David Dodwell, CEO of the trade policy and international relations consultancy Strategic Access, pointed out that the US tariffs on China have not only cost the US economy dearly, but have failed in its overall objective to reduce the US trade deficit with China. Currently, the US Trade Representative's office has received over 1,100 public comments, with many US manufacturers expressing opposition to imposing tariffs on Chinese imports, indicating that the US tariff measures are not popular.

Canada's lack of rationality is also evident in its disregard for the voices of its own people. Liu Dan, a researcher at the Center for Regional Country Studies at Guangdong University of Foreign Studies, said that there were already voices of doubt within Canada when discussions began on whether to impose tariffs on China. This move is also inconsistent with Canada's long-standing advocacy for proactive climate governance. Undoubtedly, this will increase burdens for Canadian businesses and consumers. 

Clean Energy Canada, a Canadian clean energy think tank, criticized Ottawa's decision, stating that Canada's tariffs on Chinese EVs undermine affordability and the country's climate goals. It can be said that Canada's blind increase in tariffs will disrupt normal economic and trade cooperation between China and Canada, harm the interests of Canadian consumers and businesses, hinder Canada's green transition, and impede global efforts to combat climate change, ultimately shooting itself in the foot.

China is Canada's second-largest trading partner, and the two economies are interconnected. Any disruption to this vital economic relationship through political means would be regrettable and detrimental to the Canadian economy. The US has seen the consequences of its trade protectionism as "cure-all," and it has backfired. If Canada continues to be "held hostage" by US' unhealthy policies, it will only create more barriers to free market circulation, leading to deeper negative impacts and unforeseen shocks on the domestic economy. When considering its own interests, Canada should maintain strategic clarity and prioritize the development of its own economy, rather than succumbing to pressure from the US.