Ontario Premier Doug Ford strongly criticized Canada’s recent electric vehicle agreement with China, expressing concerns about Chinese manufacturers gaining a competitive edge in the Canadian auto market to the detriment of local workers. Ford emphasized that the deal could flood the market with low-cost Chinese electric vehicles without ensuring reciprocal investments in Canada’s economy, auto industry, or supply chain. Moreover, he warned that reduced tariffs on Chinese electric vehicles could potentially hinder Canadian automakers’ access to the lucrative American market, leading to economic repercussions and job losses.
The agreement between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping involves China lowering tariffs on Canadian canola to 15% by March and exempting Canadian canola meal, lobsters, crab, and peas from tariffs until at least the end of 2026. In return, Canada will permit the entry of 49,000 Chinese electric vehicles into the market at a tariff rate of 6.1%.
While the deal includes tariff concessions for agricultural products, there is no firm commitment to invest in Canadian auto manufacturing. The government anticipates that the agreement will attract new Chinese joint-venture investments in Canada within three years. According to provincial data, Ontario’s auto sector employs over 90,000 workers and produced more than 1.3 million vehicles in 2024.
Ford urged Carney and the federal government to prioritize supporting Ontario’s auto sector to address the perceived challenges posed by the agreement. He called for the removal of the electric vehicle mandate, alignment of regulations with trading partners, and elimination of federal fees that could deter investments in vehicle manufacturing. Ford emphasized the need to bolster the Canadian auto industry through collaboration with Ontario to safeguard jobs and enhance the sector’s competitiveness.
In response to the deal, Ford criticized the lack of consultation with auto manufacturers and expressed concerns about the potential implications for negotiations with U.S. President Donald Trump. Meanwhile, industry experts highlighted that the number of Chinese electric vehicles allowed under the agreement represents a small fraction of the Canadian market and is unlikely to directly compete with domestic production, particularly in the electric vehicle segment.
The agreement sparked mixed reactions from stakeholders, with union representatives expressing apprehensions about the impact on the auto sector and the need to protect jobs. Opposition leaders, including NDP Leader Marit Stiles, criticized Ford and Carney for their handling of the deal, emphasizing the importance of advocating for Ontario’s interests in trade negotiations. Ontario Liberal critic Stephanie Bowman called out Ford for his approach to trade issues, urging proactive collaboration with Chinese electric vehicle companies to create employment opportunities for Ontario workers.