Ontario Premier Doug Ford is urging Canadians to avoid purchasing electric vehicles made in China following a recent agreement between Prime Minister Mark Carney and Chinese President Xi Jinping. Ford criticized the deal for not consulting him beforehand, expressing concerns about its negative impact on Ontario’s auto industry. He emphasized the importance of supporting Canadian car manufacturers and suggested that Chinese automakers are unlikely to establish production facilities in Canada.
Under the agreement, Canada will significantly reduce tariffs on Chinese electric vehicles and allow an annual import quota of up to 49,000 vehicles in exchange for China lowering its canola tariffs. Ford, accompanied by industry leaders, spoke out against the deal, warning that it would disadvantage Ontario’s auto sector.
Flavio Volpe highlighted that the initial purpose of the tariffs was to protect Canada’s EV investments from competition before the market was flooded with Chinese vehicles. He expressed worries that the deal could destabilize the domestic market and negatively impact Canadian suppliers and workers.
While Carney sees the deal as an opportunity for Chinese companies to produce affordable electric vehicles in Canada, Lana Payne raised concerns about the lack of guarantees and commitments from these companies. She emphasized the risk of China maintaining its EV production dominance, supported by state subsidies and low labor costs, even if some manufacturing were to occur in Canada.
Ford and industry representatives called on the federal government to implement policies that would enhance the competitiveness of the domestic auto industry, including reducing investment costs in manufacturing and research and development. They stressed the importance of protecting and strengthening the existing auto sector amidst challenges like tariffs imposed by the United States.