<ul><li>Canada agreed to cut its 100% tariff on Chinese electric vehicles in exchange for lower tariffs on Canadian farm products.</li><li>The decision was made during Prime Minister Mark Carney’s visit to Beijing to improve strained Canada–China relations.</li><li>The move breaks with the U.S. on anti-China tariffs, and opens the doors to much more affordable EV imports—possibly around $35,000 Canadian, or $25,000 U.S.</li></ul><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_first_1768567218"></div></div><p>The Chinese automotive industry received the green light to make a deeper incursion into North America on Friday as Canada agreed to cut its 100% tariffs on Chinese-made electric vehicles, opening the door to cheap imports and potentially upending the car industry on this continent.</p><p>According to the AP, CanadianPrime Minister Mark Carney announced that anti-Chinese EV tariffs would be slashed aftertwo days of meetings with Chinese leaders in Beijing. In return for lower tariffs on EVs, Canada has agreed to reduce its tariffs on Canadian farm goods, including canola seeds.</p><p>But Chinese EV imports won't flood into the country just yet.Carney said that the deal includes an initial annual cap of 49,000 vehicles on Chinese EV exports to Canada, although that grows to about 70,000 over five years. Carney said Canadians purchase about 1.8 million vehicles annually, almost a tenth of the U.S.' sales volume.</p><div>                                                                                                    </div><p>Still, the move represents a major break between Canada and the U.S., which once moved in lockstep to protect a deeply intertwined North American automotive industry.</p>    <section>        <div>            <img src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/custom/share/evus_newsletter_widget_logo.svg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="logo" original-src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/custom/share/evus_newsletter_widget_logo.svg"/>        </div>        <div>            <div>Stay informed with our newsletter every weekday</div>                        <div>                <div></div>                back            </div>                                             Subscribe                <span class="widget-newsletter__legal">For more info, read our Privacy Policy &amp; Terms of Use. </span>                    </div>    </section><p>Carney, according to the AP, touted the move as part of the growth of a whole new auto sector, and a win for Canadians seeking more affordable new-car options at a time of record-high prices. He added that most of these cars would have an import price of less than $35,000 Canadian, or about $25,000 U.S. The average new vehicle costs around $63,000 Canadian.</p><p>“We’re building a new part of our car industry, building cars of the future in partnership, bringing affordable autos for Canadians at a time when affordability is top of mind, and doing it at a scale that allows for a smooth transition in the sector,” Carney said.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_1_1768567218"></div></div><p>The deal is a groundbreaking one on several levels. First and foremost, it represents arguably the biggest automotive break in trade relations yet between the U.S. and Canada, whose once-close relations have become deeply strained in the era of President Donald Trump's tariffs and his remarks about the country becoming &#34;the 51st state.&#34;</p><p>Previously, Canada acted with the U.S. to enact 100% tariffs on Chinese-made EVs as a way to protect the North American automotive industry. Automakers, parts suppliers and other components of the car business run between both countries, and the growth of Chinese imports into Canada was widely seen as a threat to the operations of companies like General Motors, Ford, Honda, Toyota and so on, who collectively employ millions of people in both countries.</p><div><div id="ads_6122441_EV_ev_us_Native_native_3_1768567218"></div></div><div><div id="ads_6122441_EV_ev_us_Native_native_2_1768567218"></div></div><p>It is not clear which, if any, Chinese automakers could announce a move toward Canadian imports. In theory, doing so would be the first move toward more localized North American production, a long-sought goal of Chinese companies eager to expand into this continent and its massive auto market. As sales in China slow down after years of explosive growth, most large Chinese automakers are seeking growth by expanding into Europe, Latin America, the Middle East and Africa.</p><p>In Detroit earlier this week, Trump also expressed an openness to Chinese automakers coming to the U.S., as long as they build cars stateside, too.“If they want to come in and build a plant and hire you and hire your friends and your neighbors, that’s great, I love that,” Trump said during a meeting of the Detroit Economic Club. “Let China come in.”</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_2_1768567218"></div></div><p><em>Contact the author: patrick.george@insideevs.com</em></p><section> <p>More China News</p> <div> <div>                    China's Geely Clearly Wants To Come To The U.S. Here's How It Could Pull That Off </div> <div>                    Trump Is Ready For Chinese EVs: 'Let China Come In' </div> <div>                    Republicans Are Finally Warming Up To Electric Cars </div> <div>                    GM Plans To Take Back China With Buick Electra E7 </div> </div> </section><p></p>                                                                                                                                                                                                                                                                                <section><p><span>We want your opinion!</span></p><div><p>What would you like to see on Insideevs.com?</p>Take our 3 minute survey.</div><p>- The InsideEVs team</p></section>                                                                                                    <div>                                <div>                                    Share this Story                                </div>                                <div>                                    <ul>                            <li>                                                                                                                        Facebook                                                    </li>                                    <li>                                                                                                                        X                                                    </li>                            <li>                                                                                                                        LinkedIn                                                    </li>                            <li>                                                                                                                        Flipboard                                                    </li>                                                    <li>                                                                                                                        Reddit                                                    </li>                            <li>                                                                                                                        WhatsApp                                                    </li>                            <li>                                                                                                                        E-Mail                                                    </li>                                                            </ul>                                </div>                                                                                                            <div>                                            <div>                                                                                                                                                                                                    <span class="top-counter-comments-label">GO TO COMMENTS</span>                                                                                                     <div>                                                        <span>(</span>                                                        <div></div>                                                        <span>)</span>                                                    </div>                                                                                            </div>                                        </div>                                                                                                </div>                                                            <div>                                    <div>                                        <span>Got a tip for us? 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<p>Canada has decided to eliminate its 100% tariff on Chinese electric vehicles (EVs) in a bid to enhance trade relations with China, while also reducing tariffs on Canadian agricultural products. This agreement, reached during Prime Minister Mark Carney's visit to Beijing, allows for the import of affordable EVs priced under $25,000, marking a significant shift from U.S. trade policies. An initial cap of 49,000 Chinese EVs will be allowed annually, increasing to 70,000 over five years, potentially reshaping the North American automotive market.</p>

Canada Just Opened The Door To Cheap Chinese EVs