Greig Mordue is an associate professor and the ArcelorMittal Dofasco Chair in Advanced Manufacturing Policy in the faculty of engineering at McMaster University.to 100 per cent. Just six years ago, those tariffs were 2.5 per cent, the rate the U.S. charges for imported vehicles from just about every other country. Last week, the European Union also stepped in, imposing tariffs as high as 38 per cent.including Chinese electric vehicles, is 6.1 per cent, the rate it has been since 2001.
That’s when the Canadian automotive industry stakeholders called on policy-makers to deploy versions of the same protectionist tools their successors are requesting today. But here’s the thing. When limits were placed on the number of vehicles Japanese automakers could export to Canada in 1981, policy-makers didn’t rest. Instead, they leveraged the protectionist tools they had imposed to begin a multiyear process of encouraging Japanese automakers to open manufacturing facilities here.
Just as they failed to do in the 1980s, protectionist tools will not cause Chinese automakers to give up on North America and the 20 per cent of the global auto market it represents. However, high tariffscause Chinese vehicle companies to adjust their approach, expediting their shift from exporter to local manufacturer.
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