Canada’s electric vehicle (EV) market could be on the brink of a dramatic shift as Prime Minister Mark Carney heads to Beijing this week amid growing speculation that Ottawa may soften — or even remove — its 100 per cent tariffs on Chinese-made EVs.
Canadian negotiators have confirmed they are in “active discussions” with China about lowering or dropping the EV tariffs in exchange for Beijing easing its punitive duties on Canadian canola, seafood, and pork. Those retaliatory measures, imposed after Canada matched U.S. tariffs in 2024, have hit farmers in Prairie provinces especially hard, creating enormous pressure on Ottawa to find a way out.
Ontario Premier Doug Ford has emerged as the loudest opponent of any rollback. He warned this week that lifting the tariffs would allow China to “dump cheap Chinese parts and cheap vehicles here, at cost to Canadian and American jobs,” adding, “I am absolutely, 100 per cent dead against this.” Ontario has spent billions attracting battery plants, EV assembly lines, and supplier networks, and Ford argues that opening the floodgates now could undo years of industrial strategy. (via Global)
Industry leaders agree that the stakes are enormous. Brian Kingston of the Canadian Vehicle Manufacturers’ Association has called the idea of dropping EV tariffs “dangerous,” warning it could provoke retaliation from the United States just as negotiations loom to renew the Canada-U.S.-Mexico Agreement. Washington has taken a hard line against Chinese vehicles over both economic and cybersecurity concerns, even banning Chinese-connected vehicle software outright.
The irony is that Chinese automakers have shown interest in Canada before. Last year, China’s ambassador said BYD had seriously considered building in Canada but ultimately walked away due to what he described as “huge difficulties, restrictions and obstruction,” adding that Canadians missed out on “good-quality” affordable EVs as a result.
For consumers, dropping the tariffs could mean far cheaper EVs almost overnight. For farmers, it could bring relief from crushing export duties. But for Canada’s emerging EV manufacturing base — and its tightly integrated relationship with the U.S. auto industry — it could be a big shock.
