Canada’s new trade agreement with China will allow up to 49,000 Chinese-made electric vehicles into the country each year at sharply reduced tariffs, potentially improving affordability for consumers while raising concerns about domestic auto manufacturing.
BNN Bloomberg spoke with Daniel Breton, president and CEO of Electric Mobility Canada, about how lower-cost electric vehicles could influence Canadian buying decisions, competition among automakers and the country’s evolving EV supply chain.
Key Takeaways
- Reduced tariffs on Chinese-made electric vehicles could increase access to lower-priced models in a market struggling with affordability.
- Greater competition may push global automakers to accelerate development of more affordable EVs for Canadian consumers.
- The policy shift underscores Canada’s need to diversify trade partners amid uncertainty in U.S. auto trade relations.
- Imported EVs may support faster adoption but raise concerns about protecting domestic manufacturing jobs.
- Long-term benefits will depend on whether Canada can attract investment in EV components and supply-chain development.
Read the full transcript below:
ROGER: Of course, the big story today is Canada’s new trade deal with China. The news came down this morning, with Prime Minister Mark Carney saying up to 49,000 Chinese electric vehicles will be allowed into the country each year with a tariff of about six per cent. For more on how this could impact the average Canadian car buyer, I’m joined by Daniel Breton, president and CEO of Electric Mobility Canada. Daniel, thank you very much for joining us.
DANIEL: My pleasure.
ROGER: Initial reaction — 49,000 sounds like a small amount. What kind of impact do you think this will have on EVs in Canada?
DANIEL: I think it will make a difference, because right now there’s a big issue with affordability when it comes to both new electric and gas cars. When they’re talking about providing a very low 6.1 per cent tariff instead of the 106 per cent tariff for cars that could be below $35,000 — considering there are very few gas vehicles below $35,000 nowadays — I think it will make a difference. And I think it will put pressure on other automakers to come up with affordable cars.
ROGER: I mean, as long as they’re being manufactured in China, they’ll probably stay this cheap. But can American and Canadian car companies compete with that? We have different laws around wages and labour costs that naturally drive up the price of a vehicle.
DANIEL: Well, it’s funny you should mention that, because right now I’m in Paris as we speak, and I’m testing electric cars made in Europe below $35,000. So it is possible. It doesn’t necessarily mean it will come from Canada or the U.S., but what’s happening right now with the U.S. is disturbing, to say the least.
A few days ago, the president of the United States basically said, “We don’t want any cars made in Canada to be sold in the U.S.” What that means is he’s threatening the Canadian auto industry as a whole. So I think the timing for Prime Minister Carney is perfect, because it means we have to find new partners to work with, whether it’s China, Japan, South Korea or Europe.
We’ve been very codependent with the U.S. for about 60 years under the auto pact, but things are changing quickly. I see these 49,000 electric vehicles coming into Canada as a first step in the right direction.
What I’m really interested in now is hearing more about the joint ventures that could be put together over the next couple of years — meaning Chinese and Canadian companies coming together in Canada to help develop an EV supply chain, which I think is very important.
ROGER: Could this lead to Canadian EV manufacturing — actually making our own electric vehicles?
DANIEL: Possibly, or at least components of EVs. We’re talking about the Arrow project, which could be one possibility. We should look at this conservatively as good news.
As you said, it’s less than three per cent of all light-duty vehicle sales in the country, so this won’t change things dramatically on its own. But like many other things, we have to see this as an opportunity to do better business and find new partners.
Right now, the president of the United States is not a reliable partner. He’s even said he doesn’t care about CUSMA. So what do we do from here? That’s why I applaud Prime Minister Carney’s move — we have to work around the U.S. That’s the reality.
It’s also important to remember that when we talk about cars manufactured in China, it doesn’t necessarily mean cars made by Chinese automakers. These could be vehicles from GM, Toyota, Nissan or Tesla that are manufactured in China.
For example, in Mexico, you can buy a Chevrolet Spark EV that’s made in China and sold there, and that’s a vehicle Canada could potentially access. So maybe GM brings those kinds of affordable electric vehicles to Canada.
ROGER: How did Chinese EVs sell in Canada before the tariff, and do you think Canadians will actually want to buy them?
DANIEL: That’s a great question. Before the 100 per cent tariffs, going back to September 2024, the electric vehicles sold in Canada that were manufactured in China were not entry-level models. They were Volvos, Polestars and some Teslas — vehicles priced at $55,000, $65,000, $75,000 and even $100,000.
People need to understand that just because a vehicle is made in China doesn’t automatically mean it’s affordable. The purpose of this announcement is to make sure we get more affordable electric vehicles from China, and that’s very important.
ROGER: We’ll have to leave it there and let you get back to driving through the streets of Paris — not a bad place to be testing vehicles. Daniel, thanks very much for joining us.
DANIEL: My pleasure.
ROGER: Daniel Breton, president and CEO of Electric Mobility Canada.
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This BNN Bloomberg summary and transcript of the Jan. 16, 2026 interview with Daniel Breton are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
