Diversification beyond the U.S. automobile market is “not an option” for Canada and Ottawa should scrap a trade deal with China that is seeing Chinese electric vehicles enter the Canadian market, a group representing three of the biggest U.S. automakers in Canada said on Tuesday.
The standing committee on international trade in the House of Commons heard from Brian Kingston, the president of the Canadian Vehicle Manufacturers Association, a group that represents the operations of Ford, General Motors and Stellantis in Canada.
“With over 90 per cent of Canadian production destined for the U.S., U.S. market access and North American integration are the foundation of the auto industry. Diversification is not an option,” Kingston said.
European and Asian markets are better served by regional assembly plants, and the Canadian market is too small to justify large-scale manufacturing, he told the committee.
“Simply put, there is no Canadian auto industry without the U.S.,” Kingston said.
Kingston urged the federal government to “eliminate” a trade deal that Prime Minister Mark Carney signed with China in January, which has been allowing the first of 49,000 Chinese EVs in the Canadian market every year.
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There were “no guardrails in this agreement to ensure a level playing field for manufacturers that have invested here, or to protect Canadians from cyber risks.”
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With less than a month to go before the review deadline of the Canada-U.S-Mexico free trade agreement (CUSMA), the CVMA urged a surtax on Chinese EVs and a ban on some Chinese-connected vehicle software in alignment with the U.S.
Proposed legislation in the United States could mean some Canadians have to leave their cars at home if those automobiles are Chinese electric vehicles.
Last month, two Democratic lawmakers in Michigan announced the Protecting America from Chinese Cars Act, which would prevent Chinese vehicles from entering the U.S.
Michigan Congresswoman Haley Stevens and U.S. Sen. Elissa Slotkin said the Chinese auto industry is “heavily subsidized by the Chinese Communist Party,” which allows it to “undercut competitors and quickly flood new markets.”
Last week, the first batch of 2,900 Chinese EVs arrived in Canada, data from Global Affairs Canada shows.
So back out of a deal that our western brothers are relying on for a country that clearly doesn’t want our goods and services? How about refuse to sell energy (Any kind) to USA for 1 day and let’s see how fast they come to the table.
According to my reading of the tea leaves, the China EV deal will sooner or later spell the end of Prime Minister Mark Carney’s political career.
These complaints are laughable. There are over 1.7 million cars sold in Canada annually. 49,000 EVs from China would be less than 3% of the car market…. and since Tesla also manufactures in China, you could actually buy a North American brand if you wanted! This isn’t about security or free trade or protecting Canadian consumers. This is protectionism from manufacturers who couldn’t be bothered to make a quality product, and would rather the government legislate customers for them.
Consumers need choice just like Europe, Australia, Asia. Just go to any European City and there are European, Chinese and American EVs everywhere. Lobbying for the big 3 Automakers is tone deaf to what is happening outside of North America.
Michel Charette
June 10, 2026 at 11:02 am
“At this point, China is far more reliable than the US!”
You admire their soft dictatorship eh?
” Scrap China EV deal…a group representing three of the biggest U.S. automakers in Canada”
Of course they want that, it allows them to ‘skroo’ people with low quality, high prices, and poor service. The same happened when Japanese cars started to sell in Canada. North American auto manufacturers are afraid to compete and provide quality vehicles at affordable prices. Chinese EVs will take over because of the lousy and costly vehicles manufactured here.
The US automotive industry is heavily subsidized the by the fascist government of Tago Don.
For those who embrace Chinese EV’s in Canada please NEVER park them anywhere in a garage, on a street close to a building or other parked vehicles, in anywhere enclosed like a parking garage. Why …. To answer that question simply google Chinese EV fires and you can spend days and days watching thousands of videos of Chinese EV’s exploding or worse killing people when in an accident because doors won’t unlock or air bags failed. That is not even considering that the UK just came out and said that Chinese EV manufacturers are Trojan Horse spies for the Chinese military. Is it worth it for a mere 3 percent increase in market share of our economy.
After 11 years, are people still expecting the LPC to show any kind of foresight? Most of these will probably end up on the lawn at the HoC. That’s where they belong.
If Americans want to build cars in Canada, fine. That does not mean that we cannot deal with other countries, such as China to build their cars! At this point, China is far more reliable than the US!
With Donald Trump at the helm, any agreements reached aren’t worth the paper they’re written on since this irrational U.S. President changes his mind as often as he does his underwear!
When Canada agrees to a trade agreement with other countries, we can at least expect that it’ll be adhered to, unlike the U.S. that unilaterally imposes import restrictions without prior notice or justification!
As such, the U.S. can no longer be considered as a trusted and dependable ally!
Having balls would involve kicking out all three American rust bucket builders and building a Canadian car like we had in the 1920s. We had six. The Yanks bought them all.
Strait of Hormuz just amplified how they all suck.
@ Andre:
Keep buying rustbuckets.
Who cares what you buy?
My EV ran for free last week on the old charge.
You. Idiot much?
@ Freddie:
You are a special kind of stupid.
Canada has no auto sector.
Name a Canadian car.
I would like to see Canada auto sector to collapse. I want all the jobs back in the USA.
The Canadian Vehuicle Manufacturers Association wants to protect ‘Candians’ (read ‘fat Ontario auto workers’) and the ‘Canadian’ (read ‘Ontario’) auto industry, from sales (not manufacturing) of a competitive product.
Sounds like a message from the warmongering Convict in Chief of the United States of America.
Bye bye USA, we found a better partner.
If I am going to be forced to get an EV junk car, I’m going with an infinitely less expensive Chinese one.
After all, no matter where your EV junk car comes from, they will be dumped in a landfill at the same time.
Go back to your racist homophobic country. You’re not welcome in Canada anymore.
““With over 90 per cent of Canadian production destined for the U.S., U.S. market access and North American integration are the foundation of the auto industry. Diversification is not an option,” Kingston said. “Simply put, there is no Canadian auto industry without the U.S.,” Kingston said.”
Correction – Canada does not have its own auto industry BECAUSE of the big 3 American companies, and it’s time that stranglehold comes to an end. Canadians will decide what we buy and what we produce, not a handful of rich American pigs. It’s not the 18th century anymore – diversification is the ONLY option in a global market, dingus!
Oh no! I won’t be able to take my inexpensive EV to visit the US? OH NO! … Oh, wait, that’s not actually a problem. I don’t plan to visit a country actively rounding up visitors and citizens. But I guess we loose out on the slow-walked removal of their industry to American-First. Oh wait, that’s not the worst thing either.
The big 3s operations in Canada have nothing to do with building cars. They’re only here to collect government subsidies, grants and outright hand-outs to protect the same 1,000 jobs they’ve been threatening to close forever. They should just make a rule where if you want to sell here, you build here. If not then close your dealerships and stop selling cars. Ntm the big 3 are junk anyway. I stick to Toyota because they’re great cats built right here in Canada
If they don’t want Chinese cars because of security. US cars should also be banned if they also recuperate information. They should offer same value, same range for their evs and prevent any surcharges based on extra services.
Strawman argument.
Maybe we should also stop importing cars from Japan, Korea & the EU also, cause we do not want to piss off the Americans!
Please stop your stupid whining, and grow a few!!
Let the Canadian and Canadian market decide.
Canada auto sector has been in decline for a long time. Of course, Canadians will blame Trump for that also.
If Canada can’t renegotiate USMCA, all the Japanese car manufacturers in Canada might move to the USA.
Not a surprising position from an uncompetative N/A auto sector. Chinese government subsidies aside, just be better and Canadians will buy your cars. Currently, it’s no contest, electric for sure,…Chinese likely.
@anonymous 10:43
Bro be careful what you wish for. The UK just came out and admitted the largest Chinese EV manufacturer that sells EV’s in the UK is working for the Chinese military using the company to spy on the UK. Any deal with China comes with those risks and more and for less than 5 percent of our total trade. Whereas the US is almost 80 percent.
Bro should stick to his lane. Theres more at stake than ford, Stellantis and gm. Im glad canada more open to China and Europe. USA in last 10 years has been only focused on themselves. We should do the same. Not completely eliminate it, but be open.
Americans have proven to be an unreliable trade partner with Canada over the past ten years. Ignoring that fact and calling attempts to diversify away from such a trade partner as “not an option” makes no sense. Is the EV deal with China ideal? Absolutely not. But neither is putting all the eggs in a basket that needs to be renegotiated every 6 years, while having it’s value impeded on a whim.
No thought for Farmers , Fisherman , 30 thousand soy bean farmers and thousands of fisherman out east could go broke . We have to deal with China on a strategic basis
If they meet our standards and they supply jobs in Canada then let them sell in Canada. Consumers will decide.
Let the people choose, I will buy American (Tesla, Rivian), Japanese, Germany, Korea and China EV. Carney/Canada should make ALL EVs tariff-free, NO GST/PST/HST Like Norway. And in 10 years, most Canadian will not need to worry about the prices in gas station again.
Honestly, wth do politicians know about supply/demand? Stop relying on central planning the economy. It never works
China all the way! Can’t wait to buy from them.
Tool bags. They need to fire him. I am tired of getting gouged by the big 3. Mr too dogs don’t get that. 80k for a fake pickup truck. Sorry passenger vehicle. Since they don’t make trucks any more. Standard cab long bed. 5 speed tranny. He only cares about his top dollar. Not that over 50% of the population can’t afford the 50k low end price of a gm, Ford or stellantis.
Canada has almost become a parasite to the USA. It find it embarrassing as a Canadian now living in the USA for over 10 years. Canada wants the best of both worlds, like a spoiled teenager that want independence, yet still live at home parents pay for everything and cook for them also. Canadians need to get serious.
Canadiians have free will to try to export cars to other places other than the USA? Why don’t they instead of crying about the USA. Bunch of babies.
We don’t need more obsolescent American cars with 4cyl engines that sound like sewing machines. Bring on the EVs and energy independence.
The obvious leverage that exists here is to have the US remove tariffs strategically in compensation for the tariffs Canada would face if they canceled their current deal with China.
But, of course…I suspect a doubling down on China not because the previous government sealed possible evidence of collusion for just such a reason but…wait, thats exactly it.
Canada, with scandal related to Chinese interference that goes unresolved and sealed for decades, suddenly develops affection for human rights abusing China as a diversification strategy in the face of tariffs imposed by a last-time President of the US?
Remember: the argument for Liberals is that they are morally superior and economically superior to conservatives yet they embrace China over the US over a short-term dilemma and emulate the laws of human rights abusers with Bill C-22 and others.
The Americans have already said they will not build in Canada, what don’t you get about their actions
Colin, do you sniff American gas to stay high? Or wait, didn’t Americans inject bleach into their veins when President Trump told them it was safe to do so during COVID and then died? Just because we don’t like American cars doesn’t mean we like Chinese EVs either. We like to trade with China because they want our products and supplies from Canadians.
Do not scrap this EV deal. Canadians WANT these Chinese vehicles. We do not want most of those American models. Canadian farmers need to sell to China. Canadians are tired of pandering to steel, cars, and supply management.
“A level playing field” what a joke. Trump has shown he will add tariffs, without any justification. We have to cut the cord with the US, they are unreliable and are only in it for themselves. No don’t listen to the American lies.
North America car companies should make better EVs, let the market decide, no tariffs or import caps.
I don’t want fancy Chinese EVs, I want a cheap EV truck.
Fred, did you inject soy milk directly into your veins?
We wouldn’t buy a Chinese EV and more importantly, we would never, ever buy an American made car, not even Tesla. The US tariffs on steel, aluminum, and lumber; the renewed attacks of Canada as 51st states; the insatiable greed of the American companies are just a few reasons. We haven’t even travelled to the States due to the fear, hostilities, gun violence, and ICE instilled down there. Carney doesn’t admire basic dictatorship in China. He wants to avoid American products because we are fed up with the unpredictable, insanity afforded by the US president and administrators.
Carney has made so many poor choices as PM. He admires China basic dictatorship.
So the Auto industry thats basically been subsidized probably more then any other industry besides maybe Canada Post and airlines wants a deal scrapped that is helping the agricultural industry in multiple provinces and not just one province.
That sounds like a pretty dumb thing to do.
The big three screwed up decades ago when they kept building nothing but big boats.
In came Japanese cars.
Those elitists are elbozos, they don’t care how china treats their citizens as long as carney gets a deal. They must be proud of themselves not buying u s products anymore. They laid off half the people at a bakery in subury ontario, because they were not selling bread. The company is us based, but those workers were from canada.
WHAT ???
How can we cancel the only trade deal Carney has secured !!! All the L I b t a r d s on here will go out of their minds.
I question the alleged love for Chinese made EV from the crowd holding their elitist hollier-than-thou cards.
China abuses not just labour rights we take for granted but human rights in general.
I loathe that our government seeks a relationship with them at all.
So who is behind this? Glad you asked… ‘a group representing three of the biggest U.S. automakers in Canada said on Tuesday.’
They know they cant compete
If North American auto makers want to get us to buy US cars, then make them better, or cheaper, or both. – why the whining. For years they have sold vehicles that rust out faster tan the mortgages we need to take out to buy them. In 1988, I had a Datsun that got 52mpg. North American cars still cannot do that.
Whining that the Chinese government subsidised their cars, then Canada gives Honda and GM money to build theirs… Amazing.
Yet one more dumb move by Carney which will backfire big time on him.