Canada’s Carney faces pressure at home over EV trade truce with China

Ontario Premier Doug Ford has called on Canada to boycott Chinese-made electric vehicles (EVs) that will be entering the country as a result of the recent deal the federal government struck with China.

Speaking at Queen’s Park on Wednesday, January 21, Ford issued his strongest condemnation yet of the agreement, which allows up to 49,000 Chinese EVs into Canada annually at a reduced tariff rate of 6.1%, down from 100%.

The deal, announced last week during Carney’s trip to China, offers relief to Canadian canola farmers in exchange for opening the door to Chinese automakers.

Ford, who was flanked by leaders and major stakeholders in the auto sector of Ontario, stated, “Boycott the Chinese EV vehicles. Support companies that are building vehicles here.” 

Ford called for Canadians to protect domestic manufacturers like Toyota, Stellantis, and General Motors that have invested heavily in Ontario’s auto sector.

What is Canada’s auto industry saying?

Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, noted that 49,000 vehicles represent approximately one shift at an auto plant, affecting 1,000 workers directly and potentially 5,000 supplier workers.

Lana Payne, Unifor National President, stated, “Opening up the Canadian market to cheap China-owned EVs, worsens the situation we already have where more and more countries and auto companies who build and manufacture nothing here in Canada can sell here.”

She also expressed skepticism about what Carney said about Chinese companies coming to establish manufacturing operations in Canada, stating that China has an overcapacity in EV production. 

Payne also pointed out that the core supply chains of the EV market are in China.

Payne said that they are in the fight of their lives, fending off Trump’s tariffs, and that fight just got a little harder. She called for the government and other stakeholders to collectively work to stabilize and protect the country’s auto sector now so that they can have a future one.

Federal-provincial tensions as a result of the deal

Ford revealed that he received only hours’ notice before the deal was announced and has not spoken with Carney since, despite what he believed was a close working relationship. 

The premier had expected at least a courtesy call before such a consequential decision affecting Ontario’s auto workforce.

Ford has also raised national security concerns, comparing Chinese-made EVs to “Huawei 2.0” and claiming the vehicles could function as “spy vehicles” capable of monitoring Canadians’ phone conversations, which is a major reason Canada gave when it placed a ban on Huawei equipment in 5G networks in 2022.

What are other regions saying?

The deal has exposed regional divisions within Canada as its western agricultural provinces have welcomed the agreement.

Saskatchewan Premier Scott Moe called it a good deal for Canada. The new deal will see China lower canola tariffs to 15% from around 84% and remove tariffs entirely on canola meal, lobsters, crab, and peas.

Manitoba Premier Wab Kinew described it as progress, though a mixed bag.

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