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Canada breaks with U.S. on China trade

Rule Changes

Opposing EV deal

Canada followed the U.S. in imposing 100% tariffs on Chinese electric vehicles in October 2024. Seventeen months later, Prime Minister Mark Carney flew to Beijing and cut them to 6.1%β€”the first explicit break with American trade policy since Trump began his tariff offensive. The deal allows 49,000 Chinese EVs into Canada annually in exchange for China slashing canola tariffs from 84% to 15%, unlocking $3 billion in agricultural exports. The quota rises to 70,000 vehicles over five years, with half reserved for models under $35,000 CAD by 2030. Chinese automakers BYD and Chery have already met with Canadian officials about building production facilities on Canadian soil.

Updated Jan 31