Canada to give foreign automakers who build here preferential access to domestic market

A senior official said Ottawa will favour foreign automakers that build vehicles in Canada under a new auto policy due in February, and that Canada informed the United States before cutting tariffs on Chinese-made electric vehicles.

Canada plans to give preferential access to its domestic auto market to foreign automakers that build vehicles in the country, a senior official said. The government intends to publish a new auto policy in February. Officials framed the move as part of efforts to preserve and grow Canada's 125,000-job auto sector as automakers respond to U.S. trade measures. The official also said Ottawa informed the United States before reducing tariffs on Chinese-made electric vehicles on Jan. 16. Key details: - The new policy, scheduled for release in February, will favour foreign companies that assemble cars in Canada over those that import fully built vehicles, the official said. - The official was not named because they were not authorized to speak publicly on the unreleased policy. - Canada announced a tariff change with China in Beijing that cut a 100% tariff on Chinese-made electric vehicles to 6.1% for the first 50,000 imports, and Ottawa informed U.S. officials in advance of the announcement. - Prime Minister Mark Carney said the deal with China could lead to Chinese investment in Canada's auto sector within three years, and Industry Minister Mélanie Joly met with Chinese EV makers during the visit. - The official said companies that refuse to build in Canada would face less favourable market access, and offered tariffs or restrictions as examples without detailing specific measures. Summary: The reported policy is intended to give priority in the Canadian market to automakers that establish assembly in Canada and may alter terms for those that continue to import finished vehicles. The government plans to release the full policy in February; other outcomes, including any detailed measures or timelines, are undetermined at this time.