Ontario premier slams Canada’s 'lopsided' new EV deal with China
CBC
Ontario Premier Doug Ford isn’t mincing words about Canada’s new electric vehicle deal with China, saying Friday that Chinese manufacturers are gaining a foothold in the country’s auto market at the expense of workers in this country.
“The federal government is inviting a flood of cheap made-in-China electric vehicles without any real guarantee of equal or immediate investments in Canada’s economy, auto sector or supply chain,” Ford said in a statement issued shortly after news of the deal broke.
“Worse, by lowering tariffs on Chinese electric vehicles this lopsided deal risks closing the door on Canadian automakers to the American market, our largest export destination, which would hurt our economy and lead to job losses.”
Canadian Prime Minister Mark Carney reached an agreement with Chinese President Xi Jinping this week, in a move that marks a major shift in the relationship between the two countries.
As part of the deal, Carney says he expects China to lower tariffs on Canadian canola to 15 per cent by March. China will also no longer slap tariffs on Canadian canola meal, lobsters, crab and peas from March until at least the end of 2026.
In return, Canada will allow 49,000 Chinese electric vehicles into the market at a tariff rate of 6.1 per cent.
According to provincial figures, over 90,000 workers are employed in Ontario's auto sector, with over 1.3 million vehicles built in 2024.
Ford said that in order to fix what he’s calling a “mess,” Carney and the federal government will need to “urgently” support the province’s auto sector.
The premier went on to call on Carney to scrap the electric vehicle mandate, harmonize regulations with trading partners, and scrap federal fees that, he alleges, add to the cost of making vehicles and “chase away investments.”
“Instead of importing made-in-China vehicles, the federal government needs to be focused on working with Ontario to bring investment and jobs to factory floors in Brampton, Oshawa, Ingersoll and across the province, where assembly lines are at risk or have already left the country,” Ford said.
“I’m urging Prime Minister Carney to work with Ontario to strengthen Canada’s auto industry, not weaken it.”
Peter Frise, a professor of mechanical and automotive engineering at the University of Windsor, says that 49,000 vehicles is about three per cent of the Canadian market, and it's the number of cars that Stellantis's Windsor Assembly Plant would produce in 30 to 35 days.
He also said the average purchase price of a vehicle in Canada right now is in the $40,000 range.
The deal covers vehicles priced at $33,000 or less, and other cars sold at that price are already manufactured offshore.
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