Premier Ford calls on the feds to make EV cars more expensive
Ontario’s premier has asked the federal government to impose a 100% tariff on Chinese electric vehicles, which would make these cars twice as expensive as they would otherwise be. Why would Premier Doug Ford want to so strongly discourage consumers from buying these EVs? Aren’t EVs the way of the future?
The premier explained he wants the tariff to protect Ontario jobs. Back in April, he announced he was gifting $2.5 billion of Ontario taxpayers’ money to induce Honda to build four EV manufacturing plants in the province. The federal government added in their own $2.5 billion in tax credits. Combined, this $5 billion would create 1,000 jobs, which works out to a cost of $5 million per job. It’s not surprising then, that the premier wants to protect these positions – they were a very expensive purchase.
But why are these Chinese cars so cheap? In an interview with the Toronto Sun’s Brian Lilley, the president of Canada’s Automotive Parts Association, Flavio Volpe, raised the possibility of forced labor – slaves – sometimes being involved. That could be a reason to ban sales altogether, not simply penalize them.
Another critique is that the Chinese government is heavily subsiding these vehicles. But The Hub has calculated that overall, the federal, Ontario, and Quebec governments have combined to offer $40 billion in subsidies and tax credits to our own EV industry. Or as Kiernan Green noted:
“This represents 15 percent more than the companies themselves have put forward for their investments in Canada’s EV sector.”
If subsidization is an unfair business practice, then shouldn’t we should stop it ourselves (Matt. 7:12)? And if it isn’t unfair, why are we complaining?
There are other issues involved here: as Flavio Volpe noted, the same federal government that is subsidizing Canadian production is also involved in subsidizing foreign EV production too – the Liberals announced a program this past December that could credit EV manufacturers, both domestic and foreign, with as much as a $20,0000 credit per EV car sold. It is more complicated than that, but the short of it is, the government has gotten itself so muddled up in this market that its right hand is actively working against its left hand. Might that be evidence that it should get both hands, and its nose, out of the business sphere?
Taxpayers are shouldering a heavy burden for EV cars. And now, if this tariff goes through, Canadians will be asked to shoulder even more, as less expensive Chinese competitors will be tariffed out of the marketplace.
There is a broader lesson here, as this is what tariffs always do, protecting local producers at the expense of local consumers. God calls on the government to administer justice, and one of the first principles of justice is impartiality (Lev. 19:15, James 2:8). What we have happening here is an example of the government picking winners and losers, favoring EV producers over EV purchasers (and all of it done at the expensive of taxpayers). Why the one over the other? What business is it of government to show such favoritism?
Picture credit: adapted from a photo by Bruce Reeve/flickr.com and used under a Creative Commons CC BY-SA 2.0 license....
