The federal government is looking at whether to scrap heavy tariffs on electric cars from China as EV sales in Canada continue to slide, reports CTV News.
A Nanos survey for CTV News found 62 per cent of Canadians either support or somewhat support removing the current 100 per cent tax on Chinese-made EVs. Some say this could encourage China to ease up on tariffs it placed on Canadian crops like canola.
Agriculture Minister Heath MacDonald confirmed Tuesday that the review is underway. “The prime minister did say there is an EV review. We will see where that leads … the discussions are ongoing,” he said, adding that the government must put farmers first when making a decision.
Former Prime Minister Justin Trudeau imposed the EV tariffs in October 2024, saying the move was needed to shield local automakers from unfair competition (it copied the same move by the USA at the time). But since then, sales have slumped.
New federal data shows fully electric vehicle sales dropped by nearly 40 per cent, while plug-in hybrids also slipped. Only regular hybrids are seeing strong growth, with registrations up more than 60 per cent. It’s clear the federal iZEV $5,000 rebate getting axed didn’t help sales.
Last week, Prime Minister Mark Carney paused Canada’s target that 20 per cent of new car sales be zero-emission by 2026. Experts say the dip is part of a bumpy transition, but opening the market could make EVs cheaper and give buyers more choice. If Carney removes the tariffs on Chinese EVs, he would be reversing yet another decision by the former Trudeau government.
Price differences are huge: China’s BYD Seagull, for example, costs around $13,800 before tariffs or shipping. In Canada, most EVs are priced above $45,000.
The government has not yet given a timeline on when it will make a final decision.
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please bring china vehicles, we want more choices, i see vinfast cars around now, its nice to have more choices so we can really see whos got the best cars. i can see these cars being stopped at the american border haha
For the perspective: The Canadian canola sector with farmers, processors, exporters, and related services contributes about C$30–35 billion to Canada’s GDP annually and supports about 200,000 jobs.
Canada’s auto industry contributes around C$12–15 billion to GDP.
It would be a balance to consider such a move, lots at play here.