Prime Minister Mark Carney’s deal with Beijing to slash tariffs on Chinese electric vehicles (EVs) in exchange for China dropping tariffs on agricultural products like canola has caused some concern among those in Canada’s auto and political sectors.Early Friday, the Liberal government reached a deal with China to allow up to 49,000 Chinese EVs to enter the Canadian market at a tariff rate of 6.1%, down from the current tariff rate of 100% that Ottawa applied on Chinese-made EVs in the fall of 2024.Criticism was swift as Ontario Premier Doug Ford told the press that Carney’s government “didn’t consult with any of the automakers.”“This is going to be terrible for not just all the people of Ontario, but especially the auto manufacturers and the supply chain,” Ford said.“We’re letting China into a market that’s going to have lower tariffs than our largest market, the US, and I don't think that's going to go over too well with President Trump.”The premier added this deal was a “knee-jerk reaction” and is going to be a “big, big problem.”.Ford slams Carney-China deal; says it puts Canadian workers at risk.South of the border, US Trade Representative Jamieson Greer said the decision was “problematic for Canada.”“There's a reason why we don't sell a lot of Chinese cars in the United States. It's because we have tariffs to protect American auto workers and Americans from those vehicles,” Greer told CNBC, adding that cybersecurity restrictions the US adopted in January 2025 on vehicles that are connected to the internet and navigation systems were an impediment to Chinese vehicles being brought into the US market due to security issues.“I think it would be hard for them to operate here,” Greer said.“There are rules and regulations in place in America about the cybersecurity of our vehicles and the systems that go into those, so I think it might be hard for the Chinese to comply with those kinds of rules.”According to Statistics Canada, Canadians have purchased roughly 1.6 to 1.9 million vehicles per year on average in a typical market over the last five years.While 49,000 vehicles represent only 2.5 to 3% of annual sales, some industry leaders argue the impact could be far greater because Chinese EVs are expected to compete aggressively in lower-priced segments..Flavio Volpe, president of the Automotive Parts Manufacturers’ Association (APMA), cautioned against dismissing the agreement as insignificant.“China demanded we remove EV tariffs,” Volpe said on X.“For people who ask, ‘Why not, what’s the big deal?’ ask them why the Chinese think it’s a big deal.“Today is about asking the sectors that got relief from Chinese threats to talk about their upside. I will continue to warn about vigilance.”The deal has also revived previous warnings from Canada’s major auto manufacturers.In November, Canadian Vehicle Manufacturers’ Association (CVMA) president and CEO Brian Kingston told CTV News that trade-offs involving Chinese EVs risk undermining Canada’s long-standing alignment with the United States.“You cannot simply exchange a removal of EV tariffs for access to the Chinese market for canola,” Kingston said at the time.“If we threaten that relationship by opening the door to China, our broader economy is going to be at severe risk.”.WS OPINION: Carney’s EV tariffs are driving Canada into a wall.Kingston warned that subsidized Chinese EVs would pose an unfair competitive threat to Canadian producers.“You cannot allow these vehicles into the Canadian market, full stop,” he said.“China has subsidized this industry to the tune of US$230 billion. This does not allow for a level playing field, and it would be a very poor decision for Canada and for our economy.”Unifor national president Lana Payne also condemned the move, calling it a “self-inflicted wound” for an already struggling auto industry.“Providing a foothold to cheap Chinese EVs, backed by massive state subsidies and overproduction, puts Canadian auto jobs at risk while rewarding labour violations and unfair trade practices,” Payne warned in a press release.
