Experts push Ottawa to drop China EV tariffs, citing trade tensions, climate goals, and rising costs as Carney prepares for U.S. talks
Critics Call on Canada to Drop China EV Tariffs Amid Trade, Climate Pressures
As Prime Minister Mark Carney heads into high-stakes talks with U.S. President Donald Trump, Canada faces mounting calls to rethink its electric vehicle (EV) tariff policy on China — a move critics argue could ease trade tensions, lower costs, and support climate goals.
Tariffs That Backfired?
Last fall, Canada followed the U.S. in slapping a 100% surtax on Chinese-made EVs — a decision many now question. Critics say the policy has backfired, damaging Canada’s global trade ties and undercutting domestic climate ambitions.
“This was a dumb policy, and the ground has shifted to make it even dumber,” said Jessica Green, a University of Toronto professor specializing in global climate politics.
Farmers Caught in the Crossfire
The consequences have been swift. China retaliated by imposing its own tariffs on Canadian goods: 100% on canola oil and meal, and 25% on seafood and pork.
For canola farmers, the hit has been painful.
“We’re the ones taking the brunt right now,” said Andre Harpe, chair of the Canadian Canola Growers Association. “As job one, I’d like the new government to deal with these tariffs.”
Fortunately, China stopped short of taxing canola seed — Canada’s most valuable canola export — but tensions remain high.
Climate Goals at Risk
The tariff debate is not just about trade — it’s about Canada’s climate commitments. With a national goal of reaching 100% zero-emission vehicle sales by 2035, affordable EV options are critical.
Louise Lévesque of Electric Mobility Canada says Chinese EVs could help fill the affordability gap, noting models like BYD’s Seagull, which sells for just $13,000 CAD, compared to Canada’s steep EV prices ranging from $40,000 to over $300,000.
“If you want EVs to be purchased by Canadians, we need affordable models,” Lévesque stressed.
Domestic Manufacturing or Global Access?
Ottawa has invested over $46 billion into building a domestic EV industry, including a major Honda project in Ontario. But automakers fear that opening the floodgates to cheaper Chinese EVs could derail those efforts.
“We absolutely cannot undermine our own industrial base,” warned Brian Kingston of the Canadian Vehicle Manufacturers Association. “There’s a real risk the Canadian market could be flooded with dumped vehicles from China.”
A Path to Collaboration?
Not all experts see it as an either-or choice.
Niel Hiscox of Clarify Group Inc. believes Canada and China could collaborate, especially in areas like EV battery research. Others, like Lévesque, suggest targeted or temporary tariffs to give North American automakers time to scale up.
Canada could also follow Europe’s example, where EV tariffs are capped at 45%, or limit consumer rebates to Canadian-made cars.
Bigger Questions for Canada’s Economic Future
The EV tariff debate has become a symbol of a broader challenge: how Canada will navigate economic policymaking in an era of fractured U.S. relations.
As Carney prepares to meet with Trump, the question looms: Will Canada chart its own course — or keep dancing to Washington’s tune?
Final Thought:
Canada’s EV tariff policy may soon become a defining test of its trade priorities, climate ambitions, and political independence. For now, all eyes are on Ottawa.
