Ontario Premier Doug Ford has strongly criticized the recent electric vehicle agreement between Canada and China, expressing concerns that Chinese automakers are making inroads into the Canadian auto market to the detriment of local workers. Ford emphasized that the deal risks flooding the Canadian market with inexpensive electric vehicles from China, potentially displacing Canadian automakers from the crucial American market and leading to job losses.
The agreement, brokered by Canadian Prime Minister Mark Carney and Chinese President Xi Jinping, entails China reducing tariffs on Canadian canola and other agricultural products, while Canada will allow 49,000 Chinese electric vehicles to enter the market with a tariff rate of 6.1 percent. The federal government clarified that the 49,000 vehicles represent less than three percent of the Canadian new auto sales market, similar to the volume imported from China before tariffs were raised in 2023-2024.
While the deal offers tariff relief on agricultural goods, there is no direct commitment to invest in Canadian auto manufacturing. The government anticipates that within three years, the agreement will attract new Chinese joint-venture investments in Canada. 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 the federal government to prioritize supporting Ontario’s auto industry, calling for measures to boost investments and safeguard jobs in key manufacturing hubs like Brampton, Oshawa, and Ingersoll. He criticized the lack of consultation with auto manufacturers before finalizing the deal and warned of potential repercussions in negotiations with the United States.
Experts like Peter Frise from the University of Windsor noted that the deal’s impact on Canadian production would be limited, as the 49,000 vehicles targeted represent a small fraction of the market. However, concerns remain within the auto sector about the potential consequences of allowing subsidized Chinese EVs into the Canadian market.
In response to criticisms from opposition leaders, including NDP Leader Marit Stiles and Ontario Liberal critic Stephanie Bowman, Ford defended his stance, emphasizing the need for proactive measures to protect Ontario workers and ensure that trade agreements benefit local industries. Stiles accused Ford of inaction and criticized his handling of the situation, while Bowman labeled him an “armchair quarterback” for failing to take effective steps in trade negotiations.
Overall, the electric vehicle deal with China has sparked debate and raised questions about its implications for the Canadian auto industry, underscoring the importance of balancing trade agreements with safeguarding domestic manufacturing interests.