Canada is reportedly considering dropping its 100% surtax on Chinese electric vehicles after reporting that Ottawa is exploring a swap for China removing tariffs on Canadian farm goods, a potential break from the US approach.
The 100% surtax on Chinese-made EVs has been in place since October 1, 2024, covering electric passenger cars, trucks, buses and delivery vans under a federal Finance Canada action.
Beijing responded with sweeping measures in 2025, including provisional anti-dumping duties of 75.8% on Canadian canola and earlier broad tariffs that hit rapeseed oil, peas and pork. Canadian canola exports to China were valued at $5.0 billion in 2023.
China’s ambassador to Canada has since indicated those farm tariffs are a countermeasure and implied they could be dropped if Ottawa lifts the EV surtax.
“China’s tariffs on Canadian agricultural products are a countermeasure against the EV tariffs and the unilateral unjustified tariffs on China’s steel and aluminum products,” Wang Di told CTV through a translator.
Prime Minister Mark Carney has kept options open ahead of meetings with senior Chinese leaders at Asian summits, declining to confirm any EV-for-agriculture arrangement and stressing the relationship is broader than one sector.
The US still holds a 100% tariff on Chinese EVs under Section 301 measures initiated in 2024, and Washington has threatened even wider 100% tariffs starting November 1, though officials also flagged a tentative framework to pause escalation.
Ottawa has indeed rolled out substantial support tied to tariff pressures, including a $5 billion Trade Impact Program, with a broader $6.3–$6.5 billion package detailed in September.
Carney is expected to meet senior Chinese counterparts “soon,” while US–China talks are exploring a framework that could temper tariff escalation.
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2 Responses
Good idea. Canadians only want a limited number of EVs and may as well have them subsidized by China. Meanwhile, with global trade going the way it is Canada should focus on simple (not plug-in) hybrid technology and haveing 3 vehiles manufactured in Canada with Canadian parts, a Ford 150 parallel with a hybrid 4, 6 and 8 cylinder, a hybrid Honda Civic parallel, and a hybrid Toyota RAV 4. These are Canadian’s favourite vehicles. If foreign auto makers want to set up the plants, that is OK.
Why don’t we let them build EVs and sell them our agricultural products? Seems like a great trade deal to me. We can do hybrids and gas for the time being until we catch up with manufacturing (if we ever do). Or, concentrate on rare earth mineral mining development. Acknowledge we lost this race and focus on the future for a change.