TORONTO–The Canadian government’s decision to open the door to China-owned EV imports poses extreme risk to Canadian auto jobs and the future of our entire auto sector.
“This is a self-inflicted wound to an already injured Canadian auto industry,” said Unifor National President Lana Payne. “Providing a foothold to cheap Chinese EVs, backed by massive state subsidies, overproduction and designed to expand market share through exports, puts Canadian auto jobs at risk while rewarding, labour violations and unfair trade practices.”
Unifor has long warned about the risks of letting Chinese EVs flood the North American market. If left unchecked, it would cost Canadian jobs, stall domestic investment, and drive more imports from low-cost jurisdictions. With virtually no Canadian content in Chinese vehicles, our independent auto parts supply chain would also be hit hard.
It has already been seen that once access is granted, Chinese automakers quickly grab market share, as in the EU, Brazil, and other countries. Lifting the surtax risks turning Canada into a dumping ground for China-owned companies at the expense of our domestic auto industry and the Canadian workers who rely on it.
This Chinese tariff deal comes at a time when Canada’s auto sector is already in crisis, hit by U.S. tariffs on Canadian vehicles and rollbacks to U.S. EV policies. More than one-third of Unifor members at Detroit Three facilities are currently laid off, with several plants sitting idle.
Unifor maintains this shift in the auto import landscape is a dangerous move that weakens Canada’s ability to protect Canadian auto jobs during the imminent CUSMA review.
Additionally, the removal of tariffs on Canadian seafood offers temporary relief for workers in the fisheries sector, but it is not guaranteed beyond the end of the year leaving Canada vulnerable to future demands from China to protect these jobs.
“Finding a resolution to U.S. auto tariffs just got more difficult as Canada has surrendered the leverage of opening our market to China,” said Payne. “And, in exchange, the reprieve on seafood tariffs that Canada received is only temporary, covering a single fishing season.”
Talking Points – Canada-China EV Tariffs
Today’s decision is a disaster for Canadian autoworkers. Giving China-owned automakers their first foothold in the Canadian light duty vehicle sales market, is incredibly risky. The import sourcing of vehicles further destabilizes the investment climate, putting jobs of Canadian autoworkers at greater risk.
Lifting the EV surtax is a self-inflicted wound for Canadian autoworkers and Canada’s auto industry. For more than a year, Unifor has documented the perils of China’s EV incursion into North America – a move that, unless contained, will undermine domestic investment, jobs and further encourage imports from low-cost jurisdictions. There is virtually no Canadian content in Chinese cars. And it’ll stay that way, for as long as China is importing into Canada.
China’s impact is already being felt. Other countries show the risk clearly: Chinese automakers have rapidly captured market share in the EU, Brazil, and elsewhere once access was granted. Removing the surtax would turn Canada into a dumping ground for EVs and distort supply chain sourcing decisions, immediately.
Investment promises are unfounded. The Prime Minister believes allowing low-cost Chinese imports into Canada will “catalyze” domestic investment. This is absurd. The North American auto industry has lost jobs precisely because of liberal trade policy, allowing more foreign imports with no investment or job conditions. Today, more than 5 million non-North American-built vehicles are sold on the continent (roughly 25%). Lifting the China surtax will only make this worse.
Misaligning policy with US and Mexico is bad business. Over the past year, U.S. tariffs on Canadian autos, rollbacks in U.S. EV policy, and weakening consumer incentives have created an existential crisis for the industry. More than one-third of Unifor members at Detroit-3 facilities are currently on layoff, with multiple plants idle. Government must help find a resolve to U.S. tariffs. Whether we like it or not, North America is an integrated automotive supply chain. On the continent, we build cars together – unlike in China (a much larger, self-contained market). Governments have spent past years aligning their China import policy, precisely to ensure vehicles sales align with regional investment, and to prevent further import surges of foreign vehicles (which already sits at approx.. 5 million). Trump has upended the EV market – but the future is still in making EVs. Canada is now charting a different path – an import-led path – and this will create further challenges for autoworkers.
CUSMA negotiations just got harder. Negotiations to rid us of the s. 232 auto tariffs were never going to be easy. CUSMA’s renewal provides a platform on which to further these conversations. Today, Canada has sent a confused message – that they are choosing consumer policies over collaborative industrial strategy.
China is an unfair trading partner. The 100% EV surtax was justified in 2024—and remains justified today—due to unfair Chinese competition driven by heavy state subsidies, structural overcapacity, labour rights violations, and high-emissions production that undermines climate goals. Today’s move doesn’t change the fact that China is an unfair trading partner.
Canada already applies various import restrictions on low-cost Chinese goods. Overproduction in China allows exporters to flood global markets with underpriced goods, hurting domestic industries and killing jobs. Canada applies tariffs and other import controls across a range of Chinese goods. The auto industry is no different. Canada should be expanding its restrictions on Chinese-built cars and parts beyond EVs.
