Story perspectives

Canada Set to Lift EV Tariff Amid China Talks

10/29/2025

Summary

Carney Lifts Tariff

Canada is poised to lift its 100% tariff on Chinese electric vehicles as Prime Minister Mark Carney meets Xi Jinping at the APEC summit.
The move aims to reset relations with China and may help Canadian farmers by addressing retaliatory tariffs on canola and pork.
Automakers fear competition and job losses, while the EV market suffers from paused rebates and U.S. tariffs, prompting production cuts by General Motors and Stellantis.

Summary

Ford Opposes Tariff Removal

Premier Doug Ford (Ontario) opposes removing the 100% tariff on Chinese electric vehicles, saying the move could threaten local manufacturing jobs.
Manitoba Premier Wab Kinew and Saskatchewan Premier Scott Moe advocate lifting the tariffs to ease economic pressure on canola and pork sectors affected by retaliatory Chinese tariffs.
The dispute underscores a broader tension between protecting domestic industries and pursuing trade relations with China.

History

Historical Context

In 2019, Canada imposed retaliatory tariffs on Chinese goods, including a 100% tariff on electric vehicles, after China detained Canadian citizens. This followed a historical trend of increasing trade tensions, particularly since Canada established diplomatic relations with China in 1970. By 2020, Canadian exports to China fell by 26%, reflecting the ongoing struggle between protecting domestic industries and maintaining international trade relations.

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Carney Lifts Tariff

Canada is poised to lift its 100% tariff on Chinese electric vehicles as Prime Minister Mark Carney meets Xi Jinping at the APEC summit.
The move aims to reset relations with China and may help Canadian farmers by addressing retaliatory tariffs on canola and pork.
Automakers fear competition and job losses, while the EV market suffers from paused rebates and U.S. tariffs, prompting production cuts by General Motors and Stellantis.

1 / 3