XPeng X9 in a Chinese Port
Image Credit: XPeng

Ontario’s Premier Says China EV Deal Will Be ‘Big, Big Problem’ for Local Auto Sector

Ontario Premier Doug Ford said Prime Minister Mark Carney did not consult him before announcing a trade deal with China that will allow tens of thousands of Chinese EVs into Canada, calling the agreement a “big, big problem” for the province’s auto sector.

“Absolutely not. I mean, any consultation,” the premier said when asked if he spoke to the prime minister before the deal was announced.

The agreement announced Friday during Carney’s state visit to Beijing will allow up to 49,000 Chinese electric vehicles into Canada annually at a 6.1% tariff rate, replacing the 100% duty imposed in 2024.

The agreement allows for the import cap to rise to 70,000 EVs by the fifth year.

Carney said he estimates the trade deal to drive future Chinese investments into Canada’s auto sector within three years.

Ford, who leads the province where Canada’s auto industry is concentrated, warned the agreement would hurt manufacturers and supply chains across Ontario.

“The automakers, this is gonna be terrible. But not only just all the people in Ontario, but especially the auto manufacturers, the supply chain,” he said. “We’re letting China into a market that’s going to have lower tariffs than our largest market, the US.”

The premier said the deal could also complicate relations with Washington.

“I think that’s not going to go too well with President Trump. But it’s gonna hurt every single auto manufacturer, every single supply chain that has anything to do with the auto sector,” Ford said.

“This was not thought of properly. It wasn’t consulted. It was a knee jerk reaction, as far as I’m concerned. And this is gonna be a big, big problem,” he added.

Poilievre Blasts ‘Flip-Flop’

Conservative Leader Pierre Poilievre accused Carney of reversing his stance on China, noting the prime minister had previously described Beijing as Canada’s “biggest security threat.”

“Prime Minister Carney must explain how he has gone from saying China was Canada’s ‘biggest security threat’ before the election to announcing a ‘strategic partnership’ with Beijing after the election,” Poilievre wrote on X.

“His agreement will allow 50,000 EVs onto our streets jeopardizing our security and auto jobs,” he added.

Poilievre criticized the lack of guarantees on agricultural tariffs and noted that Canadian pork farmers would continue paying a 25% duty.

“Despite giving a billion-dollar taxpayer loan for Beijing to build our ships, there is no guarantee that tariffs on canola and other Canadian goods will be permanently, immediately, or completely eliminated,” he wrote.

“It’s time for Canadians to have a government that will put our country first and protect our security, our jobs and our sovereignty,” Poilievre added.

Mixed Response From Western Premiers

Alberta Premier Danielle Smith welcomed the tariff relief for agricultural producers while calling for security safeguards.

“I trust that Canadian security authorities will take any measures necessary to ensure all vehicles and other products sold into Canada pose no threat to our nation’s privacy laws or national security interests.”

Manitoba Premier Wab Kinew described the deal as “progress, but it’s a mixed bag.”

He said the de-escalation of Chinese tariffs on canola is “important for Western Canada,” while acknowledging concerns about Ontario autoworkers. Kinew said he expects US President Donald Trump will have more to say once he receives more details.

US Reactions

President Donald Trump endorsed Canada’s decision during a brief media appearance at the White House on Friday, saying “it’s a good thing for him to sign a trade deal” and adding “if you can get a deal with China, you should do that.”

The comments came hours after US Trade Representative Jamieson Greer criticized the Canadian agreement as “problematic” and suggested Ottawa may regret the deal “in the long run.”

US Senator Brian Schatz, a Democrat from Hawaii, said Washington’s deteriorating relationship with Ottawa led to a foreign policy failure.

We just got absolutely rolled in this Canada – China deal,” Schatz wrote on X. “A stark foreign policy failure with domestic economic consequences.”

Ohio Senator Bernie Moreno, a Republican, reaffirmed his opposition to Chinese vehicles entering the American market. “As long as I have air in my body, there will not be Chinese vehicles sold in the United States of America — period,” Moreno said.

Cláudio Afonso founded CARBA in early 2021 and launched the news blog EV later that year. Following a 1.5-year hiatus, he relaunched EV in April 2024. In late 2024, he also started AV, a blog dedicated to the autonomous vehicle industry.