Canada–China EV Tariff Pact Could Push Cheaper Cars Into North America

Canada’s new China EV tariff deal lifts a cap on imports (49,000 cars initially, rising to 70,000 within five years) and aims to bring cheaper Chinese EVs into North America, potentially easing U.S. affordability pressures but sparking concerns about North American auto jobs and competitiveness. The agreement could boost Chinese investment in Canada and reopen exports to Canada’s biggest port, with brands like Tesla likely to benefit from China-built models. Analysts say affordability remains the core issue for 2026’s car market, so lower-priced EVs would be a key driver if the deal translates into real demand in Canada, Mexico, and possibly the U.S.