As Prime Minister Mark Carney reduces tariffs on imports of Chinese electric vehicles, a new survey suggests Canadians are becoming much more open to buying these cars
More than half of Canadians, or 53 per cent, say knowing that an electric vehicle was made in China would have no effect on their purchasing decision, according to a new survey from Nanos Research Group for Bloomberg News.
An additional 15 percent said chinese manufacturing would make them more likely to purchase the vehicle, while 28 percent said it would make them less likely to do so.
This represents a big change from 2024, when 61 per cent of Canadians said they would be less likely to buy a Chinese electric vehicle, and only 25 per cent said it would not influence their decision. At the time, only 9 percent said they would be more likely to buy such a product if it were made in China.
Canada’s restraint toward Chinese manufacturers comes after a year of U.S. tariffs and frequent threats to impose more by President Donald Trump. Canada is the largest export market for American-made vehicles.
When did Canada’s tariffs on Chinese cars start?
In 2024, under then-Prime Minister Justin TrudeauCanada imposed an additional 100 percent tariff on Chinese electric vehicles to prevent their entry into the Canadian retail market, in line with a US move. China soon responded with its own levies on Canadian agricultural exports, including canola.
But during a trip to Beijing last month, Carney changed that policy and announced that entry into Canada would be permitted. of up to 49,000 Chinese electric vehicles a year with a much lower tariff of around 6 percent. In return, China said it would reduce tariffs on Canadian foods.
Although the vehicle quota could initially be filled with more expensive options already familiar to Canadians, such as Tesla models made in Chinese factories, the Carney government wants affordable electric vehicles to gradually enter the national market.
The pact with China includes a provision according to which part of the quota will be reserved for electric vehicles with a price equal to or less than 35,000 Canadian dollars (25,700 US dollars), as stated by the government.
Who opposes Canada’s agreement with China on electric cars?
The electric vehicle deal with China faces opposition from American manufacturers and the government of Ontario, a province that is home to several assembly plants. Ontario Premier Doug Ford has expressed security concerns, calling them “Chinese spy vehicles.”
Allowing in low-cost Chinese cars “may open up the market in terms of affordability, but it comes with its share of concerns around security, privacy and the ultimate destination of that data,” he said. Falak Kothari, Manufacturing Industry Leader at Marsh Canada.
“I think it will continue to make waves with companies like BYD and others” that could enter the Canadian market for the first time, he said.
The government also recently unveiled a plan to restore consumer incentives for purchasing electric vehicles (up to C$5,000 per vehicle) and promised new emissions standards for the industry.
Besides, The government wants to see Chinese investments in Canada’s automotive sectorwhich is having a difficult time dealing with Trump’s tariffs.
The Minister of Industry, Melanie Joly, He said the goal is to see a Chinese company form a joint venture with Canadian companies to open an assembly factory.
“We believe these great Canadian champions can partner with Chinese electric vehicle companies to make a Canadian-Chinese car to export around the world,” Joly told Bloomberg News.
The Nanos survey 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 out of 20 times.
