Trump's Tariffs Push Canada To Get Cozy With China On EVs
Key Points:
- Former President Trump’s recent remarks dismissing Canadian products and his unpredictable tariff policies have strained US-Canada trade relations, contributing to Canadian skepticism about existing agreements like the USMCA.
- In response, Canada has agreed to reduce tariffs on up to 50,000 Chinese electric vehicles (EVs) annually, lowering tariffs from 100% to 6.1%, allowing more affordable Chinese EVs to enter the Canadian market.
- This tariff reduction challenges North American automakers, as Chinese EVs will be significantly cheaper than comparable models from companies like Ford, potentially undermining domestic EV sales in Canada.
- Industry leaders criticize the chaotic US trade policies under Trump, arguing they harm US auto jobs and manufacturing competitiveness, while China’s