To say the once-steady relationship between the U.S. and Canada has been tested lately would be a severe understatement. President Donald Trump has not only sparked a bitter trade war with one of our oldest and closest allies, but he’s also cracking jokes about outright annexation. So now that America and Canada are at a level of tension not seen since the War of 1812, could Canada turn the screws to the U.S. by welcoming Chinese cars into its market?
It’s not as unrealistic as it sounds. Like the U.S., Canada has a similar 100% tariff on EVs imported from China, announced last August in solidarity with its neighbor to the south. Yet Trump’s attacks on Canada’s industries have changed the equation. As Canada looks outward for new alliances and pivots toward trading partners that appear to be more stable, it’s possible more Chinese EVs and PHEVs could enter the country.
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