GM Canada supports potential tariffs on Chinese EV imports amid market concerns

The potential of tariffs on Chinese electric vehicle imports is being welcomed by the Canadian head of General Motors as major producer BYD looks to enter the market.

"We're encouraged by the government's examination of these issues," said Kristian Aquilina, president of GM Canada.

"Because on the basis of strong competition, a fair playing field, it encourages us to invest heavily, employ deeply."

The federal government wrapped a 30-day consultation last week on whether to follow the lead of the U.S. and the European Union on imposing steep tariffs to counter the volume of production coming out of China.

Canada's auto sector faces "unfair competition" from China's state-directed policy of overcapacity and broad range of non-market policies and practices, the federal government said in announcing the consultations.

Without directly calling out Chinese producers, Aquilina noted similar concerns.

"An unfair playing field can be quite detrimental, and it's only right that the government look at these issues and consider all of the facts," he said.

He deferred to the Canadian Vehicle Manufacturers' Association for more specific commentary on the tariffs. The group has pushed strongly for alignment with U.S. policy so that the more than $40 billion in Canadian EV industry investments announced over the past four years can have room to succeed.

"This transition is happening, but it does take time, and we have to make sure that adequate supports are in place to allow these investments, and these new facilities to come online," said president Brian Kingston.

Aligning with the U.S. would also send the right signals ahead of North American trade talks scheduled for 2026, said Kingston.

"Now is the time. Let's put these policies in place, show the American people we are going to stand shoulder to shoulder with them in this approach to China."

Groups like Unifor, the Global Automakers of Canada and the Canadian Chamber of Commerce have also expressed support, while climate-focused associations like Clean Energy Canada have pushed back over concerns the move would cut off more affordable options for electric vehicles.

The potential tariffs could be substantial. In May, the U.S. boosted its tariffs to 100 per cent from 25 per cent, while the EU has set tariffs that could run upwards of 38 per cent.

For now, the only Chinese-made EVs imported into Canada are from U.S. tech giant Tesla, made at the company's Shanghai factory, which are subject to a six-per-cent import tariff.