The Decibel What Carney’s China trade deal means for EVs in Canada
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Jan 22, 2026 Dimitry Anastakis, a Professor at the University of Toronto specializing in the Canadian auto industry, discusses the implications of Canada’s new trade deal with China. He explains the introduction of 49,000 Chinese-made electric vehicles into the market, contrasting it with previous tariffs. Dimitry highlights the potential impact on jobs, the shift in buyer preferences, and the challenges for local automakers. He also warns that this deal could complicate USMCA negotiations, while expressing optimism about Canada’s ability to adapt to these changes.
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Small But Symbolic Market Opening
- The China EV deal allows 49,000 Chinese-made EVs into Canada at a 6.1% tariff, replacing a previous 100% tariff.
- Dimitry Anastakis says this is a small 'beachhead' that won't immediately upend Canada's auto sector but expands consumer choice.
Domestic Production vs. Imported EVs
- The Canadian plants mainly build different vehicle types than incoming Chinese EVs, so direct manufacturing competition is limited.
- Toyota and Honda could face some consumer-market pressure, but they aren't building EVs in Canada yet.
Which Chinese-Made Cars Might Arrive
- The 49,000 quota may include Teslas, Volvos and Volkswagens made in China and could eventually include BYD.
- Anastakis warns distribution and allocation details will determine whether Chinese brands can establish a foothold in Canada.