A trade war with China over EVs could slow Canada's low-carbon transition, groups warn

Environmental groups are calling on the federal government to avoid getting into a trade war with China over electric vehicles.Visitors check out the BYD ATTO 3 at the IAA motor show in Munich, Germany on Friday, Sept. 8, 2023. Environmental groups are calling on the federal government to avoid getting into a trade war with China over electric vehicles.

Wallace said North American automakers are bent on making expensive plug-in vehicles that only wealthy households can afford. The sector is competing with China, the world's largest EV producer. Chinese automakers can build cheaper and more technologically advanced EVs. Industry leader BYD's cheapest EV, the compact Seagull, sells for about $13,000.To protect Canada's burgeoning EV market, the federal government announced Monday it would take a step toward making Chinese electric vehicle imports more expensive.

If Canada follows through on protectionist measures, it would be following the lead of both the U.S. and the European Union." no justification to trade away high-paying, high-skilled jobs for cheap and high intensive carbon vehicles built under deplorable conditions," said Lana Payne, president of Unifor, Canada's largest private sector union.

For this reason, organizations like the Simon Fraser University-based Clean Energy Canada said Canada and other nations should not be so quick to target Chinese EVs.

Source: Car News Wire (carnewswire.net)

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