By: Nathan Bomey
Canada is slashing tariffs on Chinese electric vehicles as part of a broader trade deal.
Why it matters: Chinese-made cars are closing in on America despite attempts to keep them out.
Driving the news: Canadian Prime Minister Mark Carney announced Friday that the country will cut duties on Chinese EVs from 100% to 6.1%.
China agreed to reduce tariffs on Canadian canola seed from 85% to 15%.
State of play: While Chinese vehicles have already become popular in Mexico, there are effectively no domestic Chinese-brand vehicles sold in the U.S.
Chinese automakers have targeted the U.S. market for ages, but only in recent years have their vehicles improved in quality enough to be competitive on a global stage.
The Biden administration, meanwhile, imposed 100% tariffs on Chinese EVs in 2024 — a move that President Trump has not reversed.
Between the lines: Those 2024 duties were seen as a protectionist measure designed to shore up U.S. automotive production at a time when cheap Chinese EVs are being exported throughout the world.
The intrigue: Chinese brand vehicles are not an uncommon sight in the U.S. close to the Mexico border, which suggests the same could become true near the northern border once Chinese EVs head to Canada.
Chinese brands are expected to control about 30% of the global market for vehicles by 2030, according to AlixPartners.
Zoom in: Canada will initially cap Chinese EV imports at 49,000 annually, or less than 3% of the market for new vehicles there.
Carney predicted that Chinese EVs will create “new lower-cost options for Canadian consumers” with an import price under $35,000.
The big question is whether Chinese manufacturers begin establishing manufacturing operations in Canada and the U.S. to circumvent tariffs altogether.
أعلنت إدارة كارني أنها تتوقع أن تُسهم هذه الصفقة في “تحفيز استثمارات صينية جديدة كبيرة في مشاريع مشتركة مع شركاء موثوقين في كندا، وذلك لحماية فرص العمل في قطاع صناعة السيارات وخلق فرص عمل جديدة للعمال الكنديين، وضمان تطوير سلسلة توريد السيارات الكهربائية في كندا بشكل فعّال”.
وفي سياق متصل، صرّح الرئيس ترامب هذا الأسبوع في ديترويت بأنه يرحب بشركات صناعة السيارات الصينية لبناء مصانع في الولايات المتحدة، قائلاً: “إذا أرادوا القدوم وبناء المصنع وتوظيفكم وتوظيف أصدقائكم وجيرانكم، فهذا أمر رائع. أنا أؤيد ذلك. فلتأتِ الصين”.
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