Canada May Allow Chinese Electric Vehicles and the Reason Is Unrelated to Automobiles | Carscoops

      Lawmakers are considering eliminating the 100 percent tariffs on imported Chinese electric vehicles (EVs) in Canada.

      A recent survey showed that 62 percent of Canadians support the idea of removing these tariffs.

      Farmers are optimistic that abolishing the EV tariffs will encourage China to eliminate its 75.8 percent tariffs on Canadian canola exports.

      Chinese automobile manufacturers have made significant inroads in Asia, Europe, and South America, but the steep 100 percent tariffs have kept them out of the North American market. However, it appears that this situation may change as Canadian lawmakers evaluate the possibility of removing the tariffs, with public sentiment indicating support for such a move.

      According to a recent poll by Canada’s CTV News, nearly two-thirds of participants either supported or somewhat supported the removal of the 100 percent duty on Chinese-made EVs. Specifically, 29 percent fully supported the removal, while 33 percent somewhat supported it. Nine percent were undecided, and 27 percent opposed or somewhat opposed the elimination of the duty.

      The Canadian government implemented these tariffs 11 months ago, arguing that they were necessary to protect local automakers from unfair competition from China, which was backed by various financial aids according to an EU study that informed similar, albeit less severe, tariffs in Europe.

      Declining EV Sales

      Currently, Canadian lawmakers acknowledge that the tariffs are under reconsideration due to a significant decline in EV sales. Recent data indicates that registrations of fully electric vehicles in Canada have plummeted by 39.2 percent, partly attributed to a reduction in available incentives.

      Canada has also recently abandoned its goal for 20 percent of new vehicles to be zero emissions by 2026, acknowledging that the target was impractical. Expanding access to a broader range of EVs at more competitive prices could potentially increase the adoption of electric cars.

      CTV Survey: Do You Support Removing the 100 Percent Tariff on Chinese EVs?

      There is another influential group advocating for the removal of these tariffs, unrelated to automobiles or emissions targets: the agricultural sector. The farming community believes that if Canada eliminates its 100 percent tariffs on EVs, it may prompt China to reconsider its own 75.8 percent tariffs on Canadian crops like canola.

      Last week, Canadian Prime Minister Mark Carney pledged $370 million CAD ($267 million USD) to support the canola market in light of the ongoing tariffs. The canola industry is responsible for 206,000 jobs in Canada and contributes $43.7 billion CAD ($31.6 billion USD) to the national economy, indicating that the local government takes this matter seriously.