1. "Bordering on Insanity?" — Why it's so hard for Chinese EVs to enter Canada
Steep Tariffs & Trade Protection
Canada has implemented a 100% surtax on all Chinese-made electric vehicles, effective October 1, 2024—matching similar actions from the U.S.—alongside a 25% tariff on Chinese steel and aluminum
These tariffs have effectively halted plans by Chinese automakers, particularly BYD, to enter the Canadian market. BYD had considered launching passenger EVs here—but paused that after the tariffs were confirmed
Protecting Domestic Jobs & Fair Competition
The Canadian government launched consultations (July 2024 and again in September 2024) to respond to China’s state-directed EV overcapacity and its alleged unfair trade practices
Auto sector leaders, like GM Canada, have welcomed these protections. GM’s leadership praised the focus on creating a “fair playing field” to encourage domestic investment
Security Concerns & Political Sensitivities
Officials have raised alarms about cybersecurity and data privacy risks posed by Chinese-connected vehicles, further bolstering support for restrictive measures
So, despite the idea of Chinese EVs entering Canada, the combination of tariffs, local industry protection, and security worries makes that outcome far from straightforward—hence the “bordering on insanity” phrase.
2. "Why Canada’s Chinese Car Dream Could Be Reality"—Are there paths forward?
BYD's Preparation & Lobbying
BYD did take early steps: in mid-2024, documents revealed that the company registered lobbyists to advise the Canadian federal and Ontario governments about its expected market entry and tariffs
There were even discussions with local dealerships and potential infrastructure plans to support their rollout.
Existing Presence in Canada
Though BYD has paused EV passenger car plans, it does have a bus manufacturing facility in Ontario, and its buses already operate in cities like Toronto, Montreal, and Vancouve
This existing footprint provides a foundation that could be expanded if trade conditions evolve.
Calls for Lifting Tariffs & Building Locally
On forums like Reddit, users have argued for incentives that encourage Chinese manufacturers to build plants in Canada, not just export
Some advocate that if Chinese EVs were assembled here, it would bypass import tariffs and directly benefit Canadian workers.
Boosting Local EV Supply Chains
Canada, particularly in provinces like Quebec, is already strengthening its domestic battery supply chain thanks to strategic mineral resources, hydroelectricity, and investor incentives
If China—or its companies—can align with these supply chains, there may be a shift toward more localized partnerships.
Summary Snapshot
| Barrier ("Insanity") | Emerging Hope ("Could Be Reality") |
|---|---|
| 100% tariffs and restrictive trade policies | BYD’s lobbying efforts and existing bus manufacturing base |
| Protecting domestic manufacturing jobs | Possibility of EV assembly plants in Canada |
| Security concerns over connected V2X tech | Local supply chain strength and infrastructure investments |
| Political and public scrutiny | Demand for affordable EVs and pressure for greener transportation |
Final Take
While the phrase "Canada’s Chinese Car Dream" may seem far-fetched under current trade realities, it's not entirely out of the realm of possibility:
- BYD remains the most likely candidate, with groundwork already laid and a global strategy that includes Canada as a potential “port of entry”
- However, until tariffs are lifted or assembly operations are established domestically, widespread market access remains unrealistic.
- Canada’s aggressive move to protect domestic EV jobs and supply chains shows that if Chinese entrance is to happen, it would require significant policy shifts and assurances of local economic benefits.