Ontario Premier Doug Ford. — Bloomberg
TORONTO: Ontario Premier Doug Ford and automotive industry leaders doubled down on their opposition to Canada’s trade truce with China, warning that opening the door to Chinese electric vehicles (EVs) and auto investment risks gutting the Canadian sector.
Ford, flanked by representatives of automakers and factory workers, urged Canadians not to buy cars from China – even if they’re cheaper than domestically made ones – because they come at the cost of local jobs.
“Boycott the Chinese EV vehicles,” he said.
“Support companies that are building vehicles here. It’s as simple as that.”
Prime Minister Mark Carney’s surprise detente with Beijing has shaken the Canadian auto sector, already bruised by factory losses and job cuts tied to President Donald Trump’s tariffs.
Industry leaders warn the China deal could further weaken the continent’s integrated supply chain – even as Trump moves away from that model.
Under the deal, Canada will allow 49,000 Chinese EV imports under a tariff of about 6% instead of more than 100%, in exchange for China easing levies on canola.
The plan would also enable Chinese companies to assemble vehicles in Canada for the first time, but under restrictions that may include using Canadian software and creating joint ventures with domestic firms.
US Trade Representative Jamieson Greer said earlier Wednesday that it’s “overblown” to suggest it signals a wider shift by Canada away from the United States.
“I am focused on the suggestion about Chinese investment into Canada and that kind of thing,” he told Bloomberg Television on the sidelines of the World Economic Forum in Davos, Switzerland.
“I’m not sure that’s healthy for the North American relationship. So we’ll be looking at that.”
Ford told reporters in Toronto that he agreed.
“If there’s anyone that understands the auto sector, it’s Jamieson and I agree with him.
“It’s harmful to the North American auto market no matter if it’s Canada, the United States or Mexico,” Ford said.
Most of the cars made in Canada are destined for the United States.
The Canadian government is drafting a new automotive strategy that will give better market access to companies that build vehicles in the country, expected to be unveiled in February.
Ford argued that permitting Chinese automakers to build in Canada would create inadequate economic benefits.
“Even if they do start assembling, how about the supply chain? They come and they assemble, but they bring all Chinese parts in.
“That means nothing. We want to make sure we produce Canadian cars by Canadians,” Ford said.
Brian Kingston, chief executive officer of the Canadian Vehicle Manufacturers’ Association (CVMA), told reporters that Chinese cars made in Canada would include “mass subsidisation coming from the Chinese central government,” which “presents real risks for our ongoing relationship with the United States.”
Kingston also pointed out that Canada instead should focus on supporting the five manufacturers already in the country, namely, General Motors Co, Stellantis NV, Ford Motor Co, Toyota Motor Corp and Honda Motor Co.
The CVMA represents the interests of the first three of those companies.
In the past year, GM has shut down one plant in Ontario and threatened to cut production at another.
Meanwhile Stellantis cancelled plans to build Jeep vehicles at a factory near Toronto to make them in Illinois instead. —Bloomberg
