Canadian Prime Minister Mark Carney declare On Friday the country will reduce the 100% import tax on Chinese EVs to just 6.1%, paving the way for companies like Geely, BYD, Xiaomi, and others to establish a second foothold in the North American automotive market.
Canada will not participate in China’s EVs. The country will initially cover annual imports at 49,000 vehicles. The cap slowly increased to about 70,000 in about five years, according to the Associated Press.
This is a major change that comes as China seeks to boost its EV exports, especially given the weight of the European Union. lower your own rates on the vehicle. The US remains stalled on that front, although this week President Trump said he would open to Chinese cars build factories in the US that produce EVs.
China already exports gas, hybrid, and electric vehicles to Mexico, with the latter especially boom in 2025. Many of China’s leading EV makers have been pushing to enter the US market, including Geely, which held a drive-thru event at the Consumer Electronics Show in Las Vegas last week. When the company presented some models intended for the Mexican market, one of the communications executives pointed out to the conglomerate. it aims to announce the entry to the US in the next two to three years.
Automotive journalists, influencers, and even some executives – notably Ford CEO Jim Farley – have praised the quality of China’s EVs over the past few years.
But the 100% tariff on Chinese cars so far makes the idea of exporting to the US a non-starter. But that’s despite the fact that China’s EVs sell for less than the average car in the U.S. — a feat usually achieved through a combination of capital costs, labor, and a willingness to burn cash to gain market share.
China’s ability to undercut other automakers on price is the only concern. The US has spent the past few years trying to separate itself from China’s EV supply chain for national security reasons, according to Presidents Biden and Trump. There are also other legal hurdles. Last year, the U.S. Department of Commerce’s Bureau of Industry and Security issued rules restricting imports and sales certain connected vehicles and Chinese or Russian related hardware and software.
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On Thursday, Avery Ash, CEO of the non-profit Securing America’s Future Energy, warned against Trump’s idea to allow China to make cars in the United States.
“We have seen this strategy backfire in Europe and elsewhere—it will have a potentially catastrophic impact on our automotive industry, have a ripple effect on our entire defense industry base, and make every American less safe,” he said in a statement. “We call on the President to remain strong against China and protect American auto manufacturers and workers.”