Canadians Say They’ll Buy Cheaper Chinese EVs as Tariffs Drop

Canadian Prime Minister Mark Carney during a news conference in Beijing in January. Source: BloombergArticle content(Bloomberg) — As Prime Minister Mark Carney lowers tariffs on imports of Chinese electric vehicles, new polling suggests that Canadians are becoming much more open to buying the cars.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentMore than half of Canadians, or 53%, say that knowing an EV was made in China would have no effect on their purchasing decision, according to a new poll by Nanos Research Group for Bloomberg News. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentA further 15% said Chinese manufacturing would make them more likely to buy the vehicle, while 28% said it would make them less likely to do so.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThat’s a big change from 2024, when 61% of Canadians said they would be less likely to buy a Chinese electric vehicle, and just 25% said it would have no effect on their decision. At that time, only 9% said they would be more likely to purchase such a product if it was made in China. Article contentThe softening of attitudes in Canada toward Chinese manufacturers comes after a year of tariffs from the US — and frequent threats of more from President Donald Trump. Canada is the largest export market for US-made vehicles. Article contentIn 2024, under then-Prime Minister Justin Trudeau, Canada imposed an additional 100% tariff on Chinese EVs to effectively prevent their entry into the Canadian retail market, aligning with a US move. China soon retaliated with its own levies on Canada’s agricultural exports, including canola. Article contentBut during a trip to Beijing last month, Carney changed that policy, announcing that as many as 49,000 Chinese EVs annually would be allowed into Canada at a much lower tariff rate of about 6%. In exchange, China said it would roll back the duties on Canadian food.Article contentArticle contentAlthough the vehicle quota may at first get filled by more expensive options already known to Canadians, such as Tesla Inc. models built in Chinese factories, Carney’s government wants to see cheaply priced EVs gradually enter the domestic market. The pact with China includes a provision that part of the quota will be reserved for electric vehicles priced at C$35,000 ($25,700) or less, the government has said.Article contentThe EV agreement with China faces opposition from US automakers and from the government of Ontario, the province that’s home to several assembly plants.

Ontario Premier Doug Ford has raised security concerns, calling them “Chinese spy vehicles.” Article contentAllowing in low-cost Chinese cars “can open the market in terms of affordability, but it does come with its share of concerns around security, privacy and where that data ultimately goes,” said Falak Kothari, manufacturing industry leader at Marsh Canada. Article content“I think it’s still going to make a splash with companies like BYD and others” potentially entering the Canadian market for the first time, he said. Article contentThe government also recently unveiled a plan to bring back consumer incentives for buying EVs — as much as C$5,000 per vehicle — and promised new emission standards for the industry. Trending Subscriber only. 'We need to wake up': Atlantic Canada a microcosm of the problems facing the rest of the country Subscriber only Economy Canadians Say They'll Buy Cheaper Chinese EVs as Tariffs Drop PMN Business Subscriber only. Donald Trump plans to roll back tariffs on steel and aluminium goods Subscriber only Financial Times Avoid these TFSA and RRSP mistakes to keep the CRA off your back Personal Finance 'Escape hatches are gone': Power of sale listings surge in Toronto Real Estate Article contentFurthermore, the government wants to see Chinese investment in Canada’s auto manufacturing sector, which is struggling to cope with Trump’s tariffs.Article contentIndustry Minister Melanie Joly said the goal is to see a Chinese company form a joint venture with Canadian firms to open an assembly factory. Article content“We believe that these great Canadian champions can partner with Chinese EV companies to make a Canadian-Chinese car to export it around the world,” Joly told Bloomberg News. Article contentThe Nanos poll of 1,009 Canadians was conducted online and by phone from Jan. 31 to Feb. 4, and has a margin of error of 3.1 percentage points, 19 times out of 20.Article content—With assistance from Mario Baker Ramirez.Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Subscriber only. 'We need to wake up': Atlantic Canada a microcosm of the problems facing the rest of the country Subscriber only Economy Canadians Say They'll Buy Cheaper Chinese EVs as Tariffs Drop PMN Business Subscriber only. Donald Trump plans to roll back tariffs on steel and aluminium goods Subscriber only Financial Times Avoid these TFSA and RRSP mistakes to keep the CRA off your back Personal Finance 'Escape hatches are gone': Power of sale listings surge in Toronto Real Estate