Chinese Cars Are Officially Coming To Canada
In a massive deal reached today, Canada will drop the country’s 100% tariffs on Chinese electric cars.
As reported by AP, Canadian Prime Minister Mark Carney met with Chinese Leader Xi Jinping and agreed to cut the 100% tariff on Chinese made electric cars in exchange for China lowering the import tax on canola seeds, a major export for Canada, from 84% to 15%.
This new deal is in stark contrast to the United States’ policies which still impose a 100% tariff on Chinese made electric cars.
Initially, Carney pledged there will be an annual limit of 49,000 Chinese vehicles imported to Canada, which should grow to around 70,000 units within five years. The goal is to have Chinese manufacturers invest in the Canadian automotive industry, which is slated to happen within the next three years. If this ultimately leads to full production facilities opened in Canada, we’ll have to wait and see.
China has a booming automotive sector, specifically when it comes to electric and hybrid vehicles, with companies like BYD and Geely competing head-to-head with the best in the world in other markets. Geely technically already has a bit of a foothold in North America as the owner of Volvo and Polestar, and BYD has a bus manufacturing factory just north of Toronto.
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A 20+ year industry veteran, Mike rejoins the AutoGuide team as the Managing Editor. He started his career at a young age working at dealerships, car rentals, and used car advertisers. He then found his true passion, automotive writing. After contributing to multiple websites for several years, he spent the next six years working at the head office of an automotive OEM, before returning back to the field he loves. He is a member of the Automobile Journalists Association of Canada (AJAC), and Midwest Automotive Media Association (MAMA). He's the recipient of a feature writing of the year award and multiple video of the year awards.
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