Ontario Premier Doug Ford sharply criticized the federal government’s decision to lower tariffs on Chinese electric vehicles, warning the agreement gives Beijing a “foothold in the Canadian market” and puts the province’s auto industry at risk.
The criticism carries added weight given Ford’s role as leader of Ontario, where Canada’s auto industry is concentrated and where factories have already been battered by US trade tensions.
“Make no mistake: China now has a foothold in the Canadian market and will use it to their full advantage at the expense of Canadian workers,” Ford wrote on X Friday, hours after Prime Minister Mark Carney announced the deal during his state visit to Beijing.
Ford accused the federal government of opening the door to Chinese competition without securing sufficient benefits for Canadian manufacturing.
“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,” he wrote.
The deal announced Friday 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.
In exchange, China will lower tariffs on Canadian canola to approximately 15% from about 85%.
US Market Access
The Ontario premier warned the deal could jeopardize Canada’s trade relationship with the United States, its largest export market for vehicles.
“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,” Ford said.
The criticism underscores concerns that Canada’s pivot toward China could draw retaliation from Washington. President Donald Trump has imposed tariffs on Canadian lumber, steel, and automobiles, and his administration has made clear its opposition to Chinese EVs entering North America.
Demands for Federal Support
Ford called on Carney to take immediate steps to support Ontario’s auto sector, which employs tens of thousands of workers at assembly plants across the province.
“To fix this mess, Prime Minister Carney and the federal government need to urgently step up and support Ontario’s auto sector,” Ford wrote. “That means making the sector more competitive by ending the electric vehicle mandate, harmonizing regulations with key trading partners and scrapping federal fees that do nothing but add thousands to the cost of making vehicles and chase away investments.”
The premier urged Ottawa to focus on domestic investment rather than imports.
“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,” he said.
Call for Collaboration
Ford concluded by urging the prime minister to work with the provincial government to protect Canadian workers.
“Whether farmers or auto workers, Canadians expect and deserve a federal government that gives them every shot at success,” he wrote.
“I’m urging Prime Minister Carney to work with Ontario to strengthen Canada’s auto industry, not weaken it. Together, let’s protect Ontario and protect Canada,” Ford added.
Chinese Brands
Several Chinese automakers have been expanding into the Americas, primarily through markets in South America.
BYD began manufacturing vehicles in Brazil last year, and is selling vehicles across multiple South American markets.
XPeng has expanded last year to Guatemala, Uruguay, and Colombia.
The Shanghai-based EV maker Nio said late last year that it would bring its Firefly sub-brand to North America for the first time, with plans to debut in Costa Rica this year.
