Let’s Get it Done!
Now that America has turned its back on Canada, it may well be time for Canada to realign its strategic trade relationships, most notably with China, and the E.U.
America’s targeting of Canadian trade has Canadian economists suggesting that removing the 100% tariff on Chinese EV’s in Canada my serve to both improve trade relations with China, decrease Chinese tariffs on Canadian goods, while delivering a blow to Tesla and Elon Musk.
Canadian automaker, however suggests that doing so would threaten Canada’s existing EV industry.
In fact, Canada placed the tariffs on Chinese EV’s while imposing a 25% tariff on Chinese steel and aluminum.
But does this serve Canadian interests?
While tariffs are hurting Canada by the United States, it would make sense for Canada to drop its tariffs against China. America is no friend, obviously, so there is little point in taking a hit from China in support of the U.S.
“Chinese automaker BYD debuted its Seagull EV last year at a starting price of $14,600 CDN for a 305 kilometre range version. The cheapest options available in Canada, by contrast, start at roughly $40,000 CDN.”
Www.cbc.ca, “Should Canada ease its 100% tariff on electric vehicles from China amid trade war with U.S.?, Kevin Maimann, Mar 20, 2025.
As is occurring in the motorcycle industry, “Canada could build out its EV industry by inviting Indian and Chinese manufacturers, alongside American and European operators, to set up factories in Canada.”
Since Canada’s business quarrels with China revolve around appeasing the U.S., maybe it’s time to stop worrying about retaliation from the U.S.
“Let’s just be a sovereign nation, pursue our own best interests,” said Julian Karaguesian, an economist and lecturer at McGill University in Montreal.
So far, Canada appeasing the U.S. has simply led to more abuse by Trump.
Being a friend to the U.S. at this point, is like telling the world that you’re the mentally challenged brother of the kid they know.
Canada, should get into discussion with the Chinese, that if they wish to break into the Canadian market in a major way, then, as the EU has done, drop the tariff, but increase the surtax on Chinese vehicles, which would incentivize the Chinese to build in Canada.
If Canada and its government is serious about electrification of the auto vehicle landscape, then it needs to allow more competition in, as it would also be good for the Canadian auto industry, which, so far, has been focused on high-end, luxury EV’s.
Doing so would also incentivize providers of charging stations in Canada to build more chargers, the lack of which up to now, has been one of “the biggest deterrents for consumers considering buying an EV.”
If Trump is set on destroying the auto pact between Canada and the U.S., then making a move to invite Chinese EV manufacturers into Canada, may be a long-term strategy for growth and independence from America.
However, there is a caveat to Canada’s move towards a balanced strategic trace relationship with China. Canada must keep its trade diversified. No singly country should ever again be enabled in such a way that it can coerce or extort Canada.
That means that while China will always be part of Canada’s trade portfolio, it will not dominate it. Japan, Korea, India, Indonesia and of course Australia and New Zealand will also be part of Canada’s international trade regimen.
However, as Canadians have learned to their detriment, once bitten, twice shy.
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