Ontario Premier Doug Ford is asking the federal government to keep its tariffs on Chinese-made electrical vehicles (EVs), arguing the levies have been “key” in protecting the sector in Canada.
In a letter sent to Prime Minister Mark Carney Wednesday, Ford said that maintaining the 100 per cent tariff on Chinese-made EVs “is essential to levelling the playing field.”
“At a time when our automotive sector is under enormous financial pressures because of President Trump’s tariffs, Canada’s tariff on Chinese-made EVs is critical to protecting more than 157,000 direct jobs in Ontario and hundreds of thousands of indirect jobs across the country,” he wrote.
In October 2024, the federal government under Justin Trudeau imposed the levy on all electric and certain hybrid passenger cars, trucks, buses and delivery vans from China — following the lead of the United States. The goal was to help protect domestic producers compete against what they called an unfairly subsidized industry overseas.
China has since imposed its own nearly 76 per cent tariff on Canadian canola imports, and a 100 per cent tariff on canola oil, meal and peas.
The new Carney government has indicated it’s “looking at” the possibility of dropping those EV tariffs to lift the pressure canola farmers are facing. The prime minister has struck a different tone when it comes to Canada’s relationship with Beijing, signalling he wants to reopen talks with the country.
Ford, however, warns that maintaining tariffs on China’s EVs could be “critical to securing a trade agreement with the U.S.,” noting that any decision to lift them would "contradict and undermine months of engagement with U.S. officials and lawmakers about the need to protect and enhance our highly integrated cross-border automotive supply chains.”
“Removing Canada’s tariffs on Chinese-made EVs risks isolating our automotive sector within North America, putting Canadian auto workers’ jobs at serious risk,” he said.
“Hundreds of thousands of workers and their families are depending on us to get this right.”
Even Saskatchewan Premier Scott Moe, who recently travelled to China with Carney’s parliamentary secretary Kody Blois, said that it’s “not as simple” as just dropping the federal EV tariffs in exchange for relief on canola. He did, however, say there was room for “dialogue” and that officials are focused on how to “calibrate” trade ties between the two countries.
At the same time, Ford praised Carney’s decision to review the federal government’s own EV mandate, which would have required all vehicles to be zero-emission by 2035. There was a goal of 20 per cent sales by 2026.
“This will provide important flexibility for auto manufacturers to meet the current market demand,” Ford wrote. “Continuing the tariff on Chinese-made EVs will complement this decision, allowing Canada’s growing EV and EV battery supply chain sectors an opportunity to establish a proper foothold.”
Meanwhile, Mexico is proposing a 50 per cent tariff on electric vehicles imported from China, pending approval from Congress. Carney is set to meet with Mexican President Claudia Sheinbaum Thursday to discuss trade with the United States, as well as the countries’ bilateral relationship.
— With files from Palak Mangat
