Photo: CNW Group/Unifor
Canada’s largest private-sector union is calling on the federal government to maintain its 100 per cent surtax on electric vehicles imported from China, warning that removing the measure could further destabilize the domestic auto industry.
Unifor warned that without the tariff protection, Canadian assembly plants and supply chain jobs risk being undercut by what it describes as unfair competition from Chinese OEMs backed by state subsidies and low-cost production.
“Canada’s auto industry is facing an existential crisis, with U.S. tariffs threatening current and future product investments, including electric vehicles,” said Lana Payne, National President of Unifor, in a statement. “Lifting tariffs on China will make a bad situation far worse if Canada becomes a dumping ground for cheap, unfairly subsidized imports.”
The call comes as Ottawa reviews its Section 53 China Electric Vehicle Surtax, introduced as part of a broader effort to shield the North American auto sector. Unifor is urging the federal government to:
- maintain the 100 per cent surtax on Chinese EVs for at least 24 more months;
- extend surtaxes to cover critical EV and battery components;
- reinstate federal EV purchase incentives, but limit eligibility to Canadian- and North American–built vehicles;
- and strengthen enforcement against goods made with forced labour.
The union argues that these measures are necessary to protect recent investment in auto assembly, battery manufacturing, and critical mineral processing.
For Canadian dealers, the surtax debate highlights a growing tension: balancing the demand for affordable EVs with the need to protect domestic production and supply chains. Should the surtax remain in place, Chinese brands may remain effectively locked out of the Canadian market, preserving space for Detroit Three and European OEMs already investing in Canadian EV assembly.
