Sean O’Kane of TechCrunch
As noted by Techcrunch
Canadian Prime Minister Mark Carney announced that the country would reduce the import tariff on Chinese electric vehicles from 100% to 6.1%, paving the way for Geely, BYD, Xiaomi and other manufacturers to the second stage of penetration into the North American automotive market.
Initially the import will be limited to 49,000 cars per year. The cap will gradually increase to around 70,000 units per year over roughly five years.
This move matters in the context of China’s efforts to expand EV exports, and amid discussions about lowering tariffs on these cars in the European Union.
The United States is currently in a different regulatory regime: this week the president expressed willingness to consider the possibility of Chinese manufacturers building production facilities on U.S. soil in order to produce electric vehicles.
China already exports gasoline-powered, hybrid and electric vehicles to Mexico, with 2025 proving active for this direction. A significant share of leading Chinese EV manufacturers are looking to enter the American market, including Geely, which held a test event at CES in Las Vegas last week. Although the showcased models were aimed at the Mexican market, one of its communications directors hinted at the intention to announce entry into the U.S. market within the next two to three years.
Automotive journalists, influential influencers and even some executives – notably Jim Farley, Ford’s CEO – have highly praised the quality of Chinese electric vehicles in recent years.
Market prospects and regulatory response
“We have seen how this strategy has turned against Europe and other regions – it could have catastrophic consequences for our automotive industry, trigger ripple effects across the entire defense industrial base, and make every American less protected,” he said in a statement. “We urge the President to stay firm on China and to protect American auto manufacturers and workers.”
– Avery Ash, CEO of the non-profit organization Securing America’s Future Energy
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