Critics Urge Canada to Scrap 100% Tariff on Chinese EVs to Support Climate Goals and Trade Stability

With Prime Minister Carney set to meet Trump, decision on tariffs signals Canada’s new economic direction

As Prime Minister Mark Carney prepares to meet U.S. President Donald Trump at the White House, critics are urging the federal government to reconsider a key trade policy that could have major implications for Canada’s climate objectives and global economic strategy. At the center of this discussion is the 100 percent tariff Canada imposed on Chinese-made electric vehicles in 2024, a decision initially made in alignment with then-U.S. President Joe Biden.

Speaking to CBC News, Jessica Green, a political science professor at the University of Toronto, said the policy reflected a lack of independent thinking from Canada. “That was a dumb policy, and we followed suit by demonstrating our allegiance. The ground has shifted, making it an even dumber policy,” Green said.

The tariff has already provoked a strong response from China, which imposed a 100 percent surtax on Canadian canola oil and meal and a 25 percent tax on seafood and pork. Andre Harpe, chair of the Canadian Canola Growers Association, told CBC News, “We’re the ones taking the brunt of the hit right now,” and called on the new Liberal government to prioritize addressing the issue.

While the federal government has invested more than 46 billion dollars into building a domestic electric vehicle supply chain, including a large-scale Honda project in Alliston, Ontario, experts warn that keeping affordable Chinese EVs out of the market may hurt Canada’s efforts to reduce emissions. Louise Lévesque, senior policy director at Electric Mobility Canada, told CBC News, “If you want EVs to be purchased by Canadian consumers, we need to have affordable models.” She noted that the Chinese-made BYD Seagull costs approximately 13,000 Canadian dollars, making it far more accessible than many current models priced between 40,000 and 300,000 dollars.

Others are more cautious. Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers Association, told CBC News that lifting the tariffs could undermine efforts to build a competitive domestic industry. “We can absolutely not undermine our own industrial base. There is a real risk that the Canadian market would be flooded with dumped vehicles from China,” he said.

Still, there may be opportunities for cooperation. Niel Hiscox, president of Clarify Group Inc., suggested to CBC News that Canada could collaborate with China on battery research and development. “In battery technology and EVs, China is now absolutely the world leader,” he said.

Both Carney and Conservative Leader Pierre Poilievre have expressed support for accelerating resource development in northern Ontario’s Ring of Fire, a key component of Canada’s electric vehicle strategy. The federal government’s next move on EV tariffs may determine whether Canada chooses to assert economic independence or continues to mirror U.S. policy.

Jessica Green summed up the broader stakes in her comments to CBC News: “Will Carney forge his own path or engage in this weird hokey pokey dance with Trump?”

For more updates on Canada’s economy and international trade, visit Weekly Voice and the Canada news section.