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Canada Allows 49,000 Chinese EVs at 6.1% Tariff, Testing Auto Jobs and U.S. Ties

Rapid expansion by Chinese EV makers is forcing a reset for North American automakers.

Overview

  • Canada’s deal permits up to 49,000 Chinese-made EVs at a 6.1% tariff, with the quota set to rise toward about 70,000 within five years and a condition that at least half be priced at $35,000 or less by 2030.
  • Unifor and Ontario Premier Doug Ford warned of risks to Canadian auto jobs, and President Donald Trump threatened 100% tariffs on Canada in response to the EV opening.
  • China’s ambassador to Canada said Beijing encourages automakers to invest and build vehicles in Canada through joint ventures, calling such projects mutually beneficial.
  • China’s full-EV exports hit 1.65 million in 2025, up 67% year over year, and BYD reported 2.26 million global EV sales for the year.
  • General Motors disclosed a $6 billion Q4 EV-related charge and plans to shift Buick Envision production to Kansas City in 2028 as U.S. tariffs and waning EV incentives reshape strategies.