REGINA — Saskatchewan Premier Scott Moe says Canada should consider removing its 100 per cent tariff on Chinese electric vehicles, arguing that the levy has worsened tensions with Beijing and placed added strain on Prairie farmers.
“From Saskatchewan’s perspective, I would say, ‘Yes, let’s remove the EV tariffs,’” Moe told reporters Tuesday. But he cautioned that Ottawa must tread carefully to avoid jeopardizing trade with the United States, Canada’s largest canola buyer.
Beijing slapped a 76 per cent tariff on Canadian canola seed in response to Ottawa’s electric vehicle duty, a move that has cost the industry millions of dollars. China has also imposed 100 per cent duties on Canadian canola oil and meal. Moe said the challenge is finding a way to rebuild exports to China without undermining Canada’s relationship with Washington. “That’s the challenge and it isn’t easy,” he said.
Canada introduced the EV tariff in alignment with former U.S. president Joe Biden, who also targeted Chinese electric vehicles. Moe acknowledged that reversing the duty could risk angering current U.S. President Donald Trump, who has pushed a hard line on trade, but stressed that balance was essential.
Alberta Premier Danielle Smith has echoed Moe’s call, saying the EV tariff should be scrapped to “normalize the relationship” with China while keeping negotiations with Washington separate. Moe is set to lead a trade mission to China next week and has invited Prime Minister Mark Carney and federal ministers to join him, though he said he has not yet heard back.
Saskatchewan’s Opposition NDP Leader Carla Beck also called for action, noting that the priority should be the removal of Chinese tariffs on all Canadian canola products. “If that means putting the removal of EV tariffs on the table, then that’s something we should look at,” Beck said.
China’s canola tariffs came nearly a year after Beijing launched an anti-dumping probe, alleging Canadian exporters were flooding its market. Ottawa and farmers have rejected the claim, maintaining that Canada follows international trade rules. The federal government has given China until September, when the probe formally concludes, to make a final decision on the duties — though the deadline could be extended by six months.
Canola remains one of Canada’s most valuable agricultural exports, contributing $43 billion to the economy last year and employing more than 200,000 people.