Recently, the game between China and the United States has become more and more tense, and it is at this time that the Canadian prime minister has received a warning letter that tears the economic "pain" behind Canada's tariff policy on electric vehicles.
The warning letter was written by a Canadian governor, Kinev, to Prime Minister Carney, demanding that the federal government immediately cancel the 100% tariff on China's electric vehicles. The more the tariffs exist, the more the damage will be.
This is not only an "open challenge" by local governments to federal policies, but also reflects Canada's deep contradiction between "closely following the United States" and "safeguarding its own interests": when tariff barriers become a "double-edged sword", what is injured is ultimately Canada's own farms, factories and ordinary people.
The cause starts from last year. In order to "synchronize" the U.S. policy towards China, Canada imposed a 100% tariff on China's electric vehicles. The federal government at that time argued that this was to "protect the domestic automobile industry," but the real reason is self-evident.
In response, China responded by announcing a 100% tariff increase on rapeseed oil, oilcake, and peas originating in Canada, and a 25% tariff increase on water-filled products and pork. The first to be affected are the agricultural provinces of western Canada.
According to Kiev, a pork producer in Manitoba will suffer a loss of $19 million a year.
Saskatchewan, Canada's largest rapeseed producing province, is in an even worse situation. It is reported that in August this year, the province's exports to China were only 96 million Canadian dollars, a 76% drop from the same period last year.
You know, China used to be the second largest export destination of agricultural products in the province. Now, behind this report card is the dilemma of falling prices and narrowing sales faced by countless farmers.
In this regard, Kineff warned in his letter that Canada's tariff policy towards China has "triggered a two-line trade war", and the western provinces have become the biggest victims.
What's more interesting is that Canada's domestic attitude towards the federal government's tariff policy is also reversing.
It is said that last year, 63% of the people supported raising taxes on electric vehicles in China. Now the support rate has dropped to 44%, and the proportion of opponents has increased to 47%.
Behind this change in public opinion is the real feelings of ordinary consumers who are no longer willing to pay for the federal government’s political decisions.
In addition to Kiev’s letter pressures, Saskatoon province governor Moe also publicly called for “improving relations with China and reducing dependence on the U.S. market,” and last month sent congressmen to visit China to try to push China to abolish oil seed import tariffs.
This “local first” move is in sharp contrast to the shaking of the federal government.
The Canadian Finance Minister's Office said that it was "evaluating the tariff decision", but it did not give a timetable. Although Prime Minister Carney released the signal of "willing to deepen cooperation with China in the fields of agriculture and climate", he did not take substantial steps on the tariff issue.
It is worth mentioning that recently, Canadian Foreign Minister Anand is about to start a trip to Asia, and is preparing to visit China during the planned trip.
In an interview, she stressed that it is "crucial" to maintain stable relations with major economies, and developing relations with China is the independent choice of sovereign countries, with the interests of the people as the core.
It can be seen that Canada wants to alleviate the export difficulties of agricultural products by closer relations with China.
However, the Canadian side is worried about "angering" the United States. After all, the current US-Canada steel and aluminum tariff negotiations are still in an unstable state, which makes the Canadian government's China policy seem somewhat "twisted".
However, China has already made it clear that if Canada first cancels the unilateral discriminatory tariffs on Chinese electric vehicles, China will also cancel the tariff counter-measures imposed on Canadian agricultural products accordingly. This is a clear "window", depending on how the Canadian government chose.
If the Canadian side fails to cancel the unreasonable increase in tariffs on electric vehicles in China, then, even if it comes to the Chinese side, it can not talk about the actual results.