A Grave Warning: Dropping Tariffs on Chinese EVs Could Be a Profound Error for Canada, Says Kovrig

Michael Kovrig, a senior fellow with the CDFAI and a former diplomat, has issued a stark warning to Canada regarding its approach to Chinese electric vehicles (EVs). In a resounding message, Kovrig emphasizes that forgoing tariffs on Chinese-made EVs would not only be a grave mistake but would also signal a significant weakening of Canada's resolve in the face of Beijing's aggressive industrial policies and concerning human rights record.

Kovrig's concerns stem from a deeper understanding of China's global strategy, which he argues prioritizes national interests above all else, often at the expense of fair trade practices and international norms.

Allowing a flood of heavily subsidized Chinese EVs into the Canadian market without protective measures, he suggests, would be tantamount to 'unilaterally disarming' in an economic conflict. This move, he warns, would directly undermine Canadian industrial capacity, jeopardize domestic job growth in the nascent EV sector, and potentially make Canada overly reliant on a regime with a demonstrated history of using economic leverage for political ends.

The former diplomat points to the broader geopolitical implications.

China's rapid expansion in the EV market is not just about economic growth; it's a strategic play for global dominance in a critical future industry. Kovrig stresses that Canada needs to align itself with its allies, such as the United States and the European Union, which are increasingly implementing protective tariffs and scrutinizing China's trade practices.

To do otherwise, he argues, would isolate Canada and potentially expose it to retaliatory measures from Beijing if it acts independently later on.

Beyond economic considerations, Kovrig ties the issue to national security and human rights. He highlights that profits generated by Chinese state-backed companies often indirectly support a regime accused of severe human rights abuses, including the repression of Uyghurs in Xinjiang and the crackdown on democracy in Hong Kong.

By failing to impose tariffs, Canada might inadvertently be seen as tacitly endorsing these practices, or at the very least, prioritizing economic gains over its core values.

Kovrig's plea is for Canada to adopt a more robust and principled stance. He advocates for a comprehensive strategy that not only includes tariffs but also explores diversification of supply chains, investment in domestic innovation, and stronger diplomatic engagement with like-minded nations.

The stakes, he concludes, are incredibly high. Canada's decision on Chinese EV tariffs will be a defining moment, signaling whether it is prepared to protect its economic sovereignty, uphold its values, and stand firm in a complex global landscape, or if it will cede ground to strategic competitors.