Chinese EVs enter Canada as American carmakers retreat

Prime Minister Mark Carney and China’s Xi Jinping agreed to allow 49,000 Chinese electric vehicles into Canada at a 6.1% tariff and to reduce several Chinese tariffs on Canadian exports; critics in Ontario worry the move could affect local auto manufacturing.

Prime Minister Mark Carney reached an agreement with Chinese President Xi Jinping to allow 49,000 Chinese electric vehicles into Canada at a 6.1 per cent tariff, down from 100 per cent. The deal also included cuts to several Chinese tariffs on Canadian exports, including a temporary reduction in the canola seed levy and removal of tariffs on some seafood and peas. The announcement follows long-term changes in North American auto production and rising trade tensions with the United States. The article frames the move as part of an effort to diversify Canada's trade relationships and support export sectors. Key points: - The agreement permits 49,000 Chinese electric vehicles into Canada at a 6.1% tariff, reduced from 100% as reported. - China agreed to lower or remove several tariffs on Canadian exports, including a temporary cut in the canola seed levy and elimination of tariffs on lobsters, crabs and peas. - Critics in Ontario's auto sector and Premier Doug Ford said the deal could undermine Canada's auto manufacturing industry. - The article reports that 49,000 vehicles represent roughly 2.6% of Canada’s total car market and notes Canada sold about 264,277 EVs in 2024. - The article mentions examples of Chinese automakers such as BYD producing vehicles abroad and suggests some incoming EVs could be priced under $35,000. Summary: The agreement is presented as a bid to increase affordability for Canadian buyers and to ease export tensions for farmers and fisheries, while prompting concern among domestic auto stakeholders. The article notes potential for Chinese investment in local production but says the agreement will face a mandatory review in July, making the medium-term outcome undetermined at this time.