Canada shoots itself in the foot with new tariffs on electric cars

China's state media is criticizing Canada for its decision to impose 100 percent import tariffs on Chinese electric vehicles, using even stronger language than the official response from the Beijing government.

Canada is “shooting itself in the foot” by “following the US’s protectionist policies,” the outspoken editor of the Global Times, a mouthpiece of the Chinese government, wrote on Wednesday.

The country is held hostage by America’s “unhealthy policies” [that] will only create further barriers to free market movement and lead to even deeper negative impacts and unforeseen shocks to the domestic economy,” the Global Times claimed, urging Canada to “prioritize the development of its own economy.”

When it comes to ideas and politics, the Chinese government and state media work hand in hand. In general, however, the ruling Communist Party is quite reserved about the messages it conveys in official statements. This is less the case with the media.

On Monday, Canada announced that it would impose 100 percent import tariffs on electric vehicles made in China starting October 1. Two of Ottawa's allies – the United States and the European Union – had previously imposed tariffs on China, fearing unfair subsidies.

The Biden administration announced significant tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical devices in May. The European Union earlier this month imposed tariffs of up to 36.3 percent on imports of electric vehicles from China, with the exception of Tesla, which was subject to a reduced 9 percent surcharge.

The Chinese Ministry of Commerce described the Canadian government's move as a “typical act of trade protectionism” in a statement on Tuesday.

“China is extremely dissatisfied and firmly rejects this,” a ministry spokesman said in the statement. Canada had “blatantly violated WTO rules and blindly followed the example of certain other countries.”

The move will “disrupt the stability of global industrial and supply chains, seriously undermine the global economic system and economic and trade rules, and severely affect China-Canada economic and trade relations,” the spokesman added.

Later that day, Chinese Foreign Ministry spokesman Lin Jian also called on Canada at a press conference to “promptly correct its wrongdoing and not politicize economic and trade issues.” Beijing is ready to take all necessary measures to defend the rights and interests of Chinese companies, Lin added.

Canada said the measures were being implemented to create a “level playing field for Canadian workers” and enable domestic manufacturers of electric vehicles, steel and aluminum to compete both domestically and internationally.

The country's Prime Minister, Justin Trudeau, added that Ottawa was doing this to counter what he called China's deliberate, state-led policy of “overcapacity.”

— CNBC's Sheila Chiang contributed to this report.