Canada's agreement caps Chinese EV imports at 49,000 units annually with a 6% tariff, replacing prior 100% duties. Presidents Trump and Carney signaled support, and the gradual quota increase plus planned Chinese investment in Canadian EV production may heighten competition for Ford in Canada.
Canada's agreement with China sets an annual quota of 49,000 electric vehicles subject to a 6% tariff, phased upward over a multi-year schedule. This replaces previous tariffs exceeding 100%, opening the Canadian market to limited Chinese EV imports under revised duties.
President Trump expressed approval for the quota system and reduced tariffs during discussions with Canadian Prime Minister Mark Carney at the G7 summit in Evian. Although no formal bilateral meeting was held, Trump's support underscores U.S. acknowledgment of Canada's adjusted trade framework.
The lowered tariff and capped imports may intensify competition for Ford's EV models in Canada by allowing Chinese manufacturers to gain market share. Planned Chinese investments in Canadian EV production facilities could further challenge domestic automakers if local content requirements are not stringent.
