Even with Carney’s new deal, don’t expect to buy a cheap Chinese EV any time soon
Key Points:
- Prime Minister Mark Carney and Chinese President Xi Jinping agreed to allow 49,000 Chinese electric vehicles (EVs) into Canada at a reduced tariff of 6.1%, down from 100%, marking a limited reopening of the Canadian EV market to Chinese imports.
- The deal is unlikely to significantly impact Canadian auto manufacturing jobs or lead to a flood of affordable Chinese EVs in Canada, as the import quota is small relative to total vehicle sales and Canadian-built EVs are mostly high-end models.
- Chinese automakers may be hesitant to enter the Canadian market immediately due to the small import quota, high costs of meeting Canadian safety standards, and the challenge of establishing dealer networks for limited sales volumes.
- It is expected that