Ottawa considering scrapping tariffs on Chinese electric vehicles

As EV and hybrid car sales in Canada have slowed, some are wondering if removing tariffs on Chinese-made EVs would turn the tide. Genevieve Beauchemin reports.

If Canadians were in the driver’s seat, tariffs imposed by Ottawa on Chinese electric vehicles (EV) would have an easier road to the Canadian market.

At least that’s according to a Nanos Research survey with CTV News, which found 62 per cent of respondents either support or somewhat support removing a 100 per cent tax on all Chinese-made EVs, in the hopes that China may remove tariffs against Canadian crops like Canola.

Agriculture Minister Heath MacDonald said Tuesday a decision to scrap or ease these tariffs is under review, but would include consideration of the impacts on other sectors, and that China had not yet communicated what exactly it wants.

“The prime minister did say there is an EV review. We will see where that leads … the discussions are ongoing,” said Macdonald. “We are in a fragile position, but we are here to support the farmer first and foremost, and if that decision has to be made, then that decision has to be made.”

Canada imposed the tariffs in October 2024, with the government saying at the time it was protecting local manufacturers from China’s unfair trade practices. But since then, the EV market has hit a series of bumps in the road.

Statistics Canada released new numbers Monday that show sales of fully electric vehicles dropped 39.2 per cent, while sales of plug-in hybrids have gone down 2.2 per cent. New registrations for hybrid electric vehicles, however, increased 60.7 per cent.

Statistics Canada pointed to new zero-emission vehicle registrations having continued a downward trend, as incentive programs in several parts of the country had dried up.

Last week, Prime Minister Mark Carney announced a pause in the federal government’s EV target of 20 per cent of light-duty vehicles sales to be zero-emission by 2026.

Simon Fraser University professor Jonn Axsen says in the long term, Canada is heading towards electric mobility and that dips in the market reflect normal variations in a transition. He also says a strategy to boost sales is likely to include incentives, mandates and a more open market.

‘More choice for buyers’

“It is going to be a more efficient transition if we open up the market to anyone who can provide quality EVs that customers choose to buy,” he said. “If anyone can enter the market, then there is only more choice for buyers.”

Axsen says there are measures that can be put in place to ensure competition is fair, but that competition could give an extra push for Canadian manufacturers to invest in innovation, which could lead to them becoming “leaders globally, so that we are part of this future rather than being dragged behind it.”

The future, he adds, includes having more affordable EVs on offer.

The price tag for a Chinese-made BYD Seagull, which has now surpassed Tesla as the world’s largest EV manufacturer, is around $13,800 — without the 100 per cent tariffs, or added costs like safety certification and shipping.

At the moment, few EV models in Canada are available for less than $45,000.

Still, many in Canada’s automotive field say the industry could pay a high price for the low cost of allowing Chinese-made EV’s to be sold in this country.

“As much as we don’t like the way the Chinese have build the industry, we know it is the future, so we can’t be running around with a blindspot,” said Flavio Volpe, president of the Automotive Parts Manufacturers’ Association on Friday. “But also, giving away part of the market because enthusiasts want Chinese vehicles, well, we should also remember that these enthusiasts don’t employ anyone.”

Methodology: The Nanos research was a hybrid telephone and online random survey of 1,028 Canadians, 18 years of age and older, commissioned by CTV News. It was conducted through both landlines and cell-lines across Canada between Aug. 30 and Sept. 3, 2025. The margin of error is ±3.1 percentage points, 19 times out of 20.