Prime Minister Mark Carney
Prime Minister Mark Carney is pitching a reset in Canada’s relationship with China, one that could reshape both trade policy and the EV market dealers are already trying to navigate.
In a news release issued today from Beijing, the Prime Minister’s Office said Canada will allow up to 49,000 Chinese EVs into the country at a 6.1 per cent most-favoured-nation tariff rate, calling that volume “under 3 per cent” of Canada’s annual new-vehicle market. The number is expected to rise to about 70,000 annually by year five.
“At its best, the Canada-China relationship has created massive opportunities for both our peoples,” said Carney in a statement. He framed the EV plan as part of a deeper cooperation on energy, clean technology, agri-food and supply chains. He also argued the approach could support Canadian competitiveness and spur investment tied to EV manufacturing and components.
One detail that will get the attention of Canada’s auto retail sector: Carney said that within five years, more than 50 per cent of the vehicles imported under the framework would be “affordable EVs” with an import price of less than $35,000.
CBC News reported that today’s announcement came during a broader trade mission, as Ottawa looks to stabilize key export relationships and reduce vulnerability tied to shifting global trade pressures.
The Associated Press noted the direction would mark a sharp change from Canada’s recent posture toward Chinese EVs, after aligning with the U.S. approach on stricter barriers, while Canada also looks for improved access for Canadian exports.
On agriculture, Carney said China is expected to reduce combined tariffs on Canadian canola seed to about 15 per cent by March 1, 2026 — down from roughly 85 per cent, and ease other measures affecting products including canola meal and seafood.
For dealers, there are a few things to consider: if lower-priced Chinese EVs arrive in meaningful numbers, they could squeeze pricing in entry-level segments, shift consumer expectations, and complicate used EV values and trade-in strategy.
Reaction to the news was immediate.
The Canadian Automobile Dealers Association (CADA) released a statement that reinforced their concerns about wanting more details and also the need to work with Canada’s retail dealer network.
“At this moment, many questions as to how the import quotas will be managed and what manufacturers or brands they will apply to are still unclear. We are engaging with the Federal government to review the full details of this agreement to ensure that affordability, competition and long-term market stability remain central considerations,” said the CADA statement sent to Canadian auto dealer. “Our members have always competed successfully in a highly-dynamic marketplace, provided there is a level playing field and clear, consistent rules. In this respect, we are engaging with potential new market entrants to ensure they understand the benefits of working with dealers in a franchise model, and what our Canadian common business practices are.”
Ontario Premier Doug Ford, who has been highly-critical of any attempts to lower tariffs on Chinese-made EVs also issued a statement. “Make no mistake: China now has a foothold in the Canadian market and will use it to their full advantage at the expense of Canadian workers. The federal government is inviting a flood of cheap made-in-China electric vehicles without any real guarantee of equal or immediate investments in Canada’s economy, auto sector or supply chain. Worse, by lowering tariffs on Chinese electric vehicles this lopsided deal risks closing the door on Canadian automakers to the American market, our largest export destination, which would hurt our economy and lead to job losses,” said the statement published on X.
Travis Allan, President and CEO of the Canadian Charging Infrastructure Council, which represents Canada’s EV Charging Sector, applauded the news from Ottawa. “Canadians are looking for strong and strategic leadership in the context of major trade uncertainty and Prime Minister Carney’s government has delivered a very promising result today in Beijing.”
Allan added that reducing trade restrictions against affordable EVs will save Canadians money and create more attractive conditions for investment in the EV charging sector. “This is a win-win for Canadian drivers and our economy.”
Click here to read the official statement from the Prime Minister’s Office.
