Bay of Quinte MP urges tariffs on Chinese EVs to shield North American auto and aluminium industries

As part of a bold move to protect local jobs and the North American auto industry, Ryan Williams, MP for the Bay of Quinte, Canada, will reportedly submit a motion in Parliament on August 21, 2024, questioning the Federal Government's stance on tariffs for electric vehicles imported from China.

In a press release issued by his office, Williams expressed concern that the influx of Chinese electric vehicles poses a significant threat to the livelihood of North American auto workers. He emphasised the potential impact on local jobs in Belleville, particularly at automotive parts manufacturers Magna International and Hanon Systems.

Williams stated in the release, “We have an integrated North American automotive industry that employs 500,000 people in Canada, including car dealers, auto part manufacturers, and service. It is an $18 billion industry here in Canada.”

Williams added that this initiative also aims to protect the steel and aluminium industries. At the beginning of 2024, it was predicted that aluminium demand would be driven largely by the transportation sector, with EVs playing a major role.

“In my role as Shadow Minister for Pan Canadian Trade and Competition, I have seen full well that this industry is under threat from China EVs due to unfair trade practices. They are heavily subsidised and have questionable labour standards in vehicles that collect and store data. We are unsure how safe your data is in those vehicles.”

Conservative leader Pierre Poilievre has unveiled a plan to impose tariffs on Chinese-made electric vehicles (EVs) and components, aligning with U.S. measures. The proposal includes a 100 per cent tariff on EVs manufactured in China entering Canada, a 50 per cent tariff on semiconductors and solar cells, and a 25 per cent tariff on steel, aluminium products, graphite, other critical minerals, EV batteries, battery parts, permanent magnets, and ship-to-shore cranes. Additionally, the plan would eliminate rebates for EVs produced in China.

“This put jobs in Belleville and Bay of Quinte under threat. I will work hard to ensure our auto and manufacturing industries in Canada and the Bay of Quinte Region are protected from unfair Chinese trade practices,” Williams said.

AL Circle’s industry-focused report ‘Global Aluminium Industry Outlook 2024’ stated, “In 2024, the market outlook for primary aluminium is forecasted to be mixed, with both upside and downside. The persistent global economic uncertainty is poised to exert a sustained influence on the outlook of the aluminium industry. However, the growing adoption of electric vehicles (EV) and green energy infrastructure (renewable energy) should cushion the slowdown in more traditional sectors for lightweight metal.”

Major end-use markets for aluminium (primary + secondary), such as transportation, building & construction and the packaging sector, accounted for about 65 per cent of the total usage in 2023. In 2024, the transportation sector, followed by the electrical & electronics and packaging sectors, is expected to grow. The transportation sector accounted for the major share of 28 per cent, followed by the building & construction sector at 21 per cent in 2023.

Global aluminium usage across end-user sectors, 2023 (000 tonnes)

Total usage: 97.8 million tonnes

The transportation industry exhibited a commendable performance, especially in lightweight and electric vehicles (EVs), where aluminium is pivotal. The surge in fuel efficiency and emission reduction demand was a driving force behind this positive trend.

Passenger cars are the single largest user segment of aluminium amongst other transport sectors, and the rise of EVs also plays a crucial role. However, aluminium bus coaches and trains and shipbuilding also witnessed growth. With the benefits of aluminium being fully realised, aluminium usage in passenger cars is likely to increase at a healthy pace as the sales of new cars pick up the pace. The aerospace sector has fully leveraged the benefits of aluminium as a lightweight material for many years.