Global Automakers of Canada Reacts to Canadian Government Granting Entry to Canadian Market to Chinese Electric Vehicles

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Friday, 16 January 2026 12:00.PM

Global Automakers of Canada (GAC) and its members note today’s
announcement between Prime Minister Carney and Chinese President Xi Jinping with cautious
concern, particularly regarding the potential impacts on Canadian consumers and the long-term
stability of Canada’s automotive sector. The decision to allow 49,000 Chinese EVs into Canada at
the MFN tariff rate of 6.1% as an expression of goodwill to secure relief from Chinese tariffs on
canola and other agricultural products may offer short term price relief, but it risks creating
significant market distortions, could ultimately limit consumer choice and undermine the viability of
the companies currently investing in and supporting Canadian jobs.

“Our members are concerned that this announcement just adds one more piece of uncertainty into a
highly uncertain environment for the automotive industry with a myriad of other issues impacting the
operations of all manufacturers and distributors in Canada,” said David Adams, President and CEO.
“We just heard about this this morning, like everyone else, so we need to better understand what
has been agreed to and we require the federal government to consult with industry before
implementation,” added Adams.

“This is one piece of a larger strategic automotive strategy puzzle that has been hinted at by the
federal government but for which we have no further clarification on items such as the electric
vehicle mandate, tariffs, counter veiling tariffs, regulatory burden etc. We need both clarity and
certainty,” said Adams

SOURCE: Global Automakers of Canada

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