An awful lot of Auto workers in the upper midwest drank the kool aid and voted for Trump. But, play stupid games, win stupid prizes.
Canadian Prime Minister Mark Carney, who lives at an intellectual level several orders of magnitude above the current US administration, understands the seriousness of the current crisis, and the need to meet Donald Trump’s mad initiatives with clear counter moves, came back from a precedent shattering visit to China with new agreements designed harmonize with, in his words, “a new world order” – he says the words very slowly and distinctly, so that even the most dementia addled narcissistic brain might hear them.
The agreements include large exports of Canadian Liquified Natural Gas to China and Asia generally, and, critically, an opening for China to begin exporting affordable Electric Vehicles to Canada, and enter talks to begin manufacturing those vehicles here in North America.
Currently, Chinese EVs have been subject to 100 percent tariffs by Canada, which has bent over backwards to support the US auto industry, and the historically friendly relationship with the US. The new agreement slashes those tariffs to 6.1%, essentially opening the door to what may be a flood.
Canada will initially allow in up to 49,000 Chinese electric vehicles at a tariff of 6.1% on most-favoured-nation terms, Carney said after talks with Chinese leaders including President Xi Jinping.
That compares with the 100% tariff on Chinese electric vehicles imposed under former Prime Minister Justin Trudeau in 2024, following similar U.S. penalties. In 2023, China exported 41,678 EVs to Canada.
“For Canada to build its own competitive EV sector, we will need to learn from innovative partners, access their supply chains, and increase local demand,” Carney said, turning away from Trudeau’s rationale that tariffs were needed to protect domestic producers against subsidised Chinese manufacturers.
Relaxing EV tariffs diverged from U.S. policy, and some members of U.S. President Donald Trump’s cabinet criticised the decision ahead of an expected review of the U.S.-Canada-Mexico trade deal.
But Trump himself expressed support for Carney. “That’s what he should be doing. It’s a good thing for him to sign a trade deal. If you can get a deal with China, you should do that,” Trump told reporters at the White House.
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Here, Daniel Breton, CEO of Electric Mobility Canada, adds some nuance in a Bloomberg interview.
Below, in Ontario, which is home to most of Canada’s domestic auto manufacturing, (generally US Big 3 companies), Premier Doug Ford expressed some alarm.
UPDATE:
Carney lingers on the words “new..world..order.”
It’s a start – going forward it looks like Chinese EV manufacturers will start to invest in Canada and work with Canadian manufacturers to build here.
I give Carney a thumbs up for building a trading relationship with China. There is a lot of potential here for both countries. That said, don’t forget that Carney is a Petrohead advocating for new oil pipelines and increased LNG exports off Canada’s west coast. He is also a Wall Street hack to the bone and will do whatever he has to to defend the financial industry and accelerate wealth inequality.
Ontario’s Premier Ford’s reference to the automaker and “supply chain” issues is probably more about the ICE→EV transition than the Chinese partnership. An EV battery and an electric motor represent many fewer parts, less labor and lower service costs than internal combustion engines.
I’ve joked about the many “negatives” of my Leaf: no tailpipe, no muffler, no catalytic converter, no dipstick, no gas tank, no timing chain/belt.