[Martinjlm]

Canada is dropping tariffs on Chinese built Electric Vehicles from 100% to 6%.

https://youtu.be/TsWk0Fs4EKs?si=cs_AmJH5FfYRuosB

So what does that mean and why should we care?

In 2025, US domestic automaker imports into Canada hit a new low. Part of this is due to US automakers ceasing key operations in Canada. As a result Canada dropped preferential tariff treatment for those companies. Ford closed the Oakville Assembly plant where Edge was manufactured. They did so promising that they would build EVs in the plant, then cancelled the planned model. GM closed the CAMI plant where the Brightdrop commercial vans were produced. Stellantis has reduced jobs and output at Brampton, Ontario.

So US built cars became more expensive in Canada due to dropping of the preferential tariffs. At the same time, Chinese automakers have been looking at the prospect of building in Canada, possibly even taking on some of the capacity idled by GM, Ford, and Stellantis.

Canada still has targets to achieve specific levels of electrification. Quebec and British Columbia in particular have very aggressive targets and continue to see increasing sales of EVs.

Why should the US care? When vehicles like pretty much the entire portfolio of BYD hybrid, PHEVs and EVs start landing in Canada at very aggressive prices and very competitive, high performing and technology rich products like Xiaomi SU7 and Zeekr 001FR and 009 start showing up at prices undercutting Tesla, GM, Ford and Stellantis vehicles, exports to Canada are likely to be significantly reduced. Historically, US automakers could count on selling 8 - 10% of their volume in Canada. This can affect overall production volume for US manufacturers and result in layoffs.