Updated January 18, 2026 @ 12:27pm
Prime Minister Mark Carney said that the electric vehicle deal with China is an "opportunity" for Ontario and autoworkers, despite criticism of the deal from Premier Doug Ford and union representing Canadian autoworkers.
Speaking in Doha, Carney said there is interest in Chinese companies producing "affordable" electric vehicles in Canada.
"We've had direct conversations directly from the Chinese companies... with explicit interest and intention to partner with Canadian companies," Carney said at a Sunday news conference.
"We'll see what comes to pass. This is an opportunity for Ontario. It's an opportunity for Ontario workers, opportunity for Canada, done in a controlled way with a modest start."
Barrie's News Delivered To Your Inbox
By submitting this form, you are consenting to receive marketing emails from: Central Ontario Broadcasting, 431 Huronia Rd, Barrie, Ontario, CA, https://www.cobroadcasting.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact
The prime minister did not name any specific companies Canadian officials have had contact with.
Carney and Chinese President Xi Jinping signed an agreement Friday that will see Canada allow Chinese electric vehicles into the country at a 6.1 per cent tariff rate.
The deal includes an annual import quota of up to 49,000 Chinese EVs, and 50 per cent must have an import price of under $35,000 by 2030.
Canada joined the U.S. in putting a 100 per cent tariff on Chinese electric vehicles in 2024, with accusations of unfair subsidies and dumping vehicles in the North American market.
Ford said in a social media statement Friday that this deal runs the risk of flooding the market with cheap, Chinese EVs without guaranteed Canadian investment.
"Worse, by lowering tariffs on Chinese electric vehicles this lopsided deal risks closing the door on Canadian automakers to the American market, our largest export destination, which would hurt our economy and lead to job losses," Ford said.
Lana Payne, Unifor president, said in a news release that this deal is a "self-inflicted wound" on an already hurting Canadian auto industry. She said that the U.K. and Brazil show that once China is allowed into an auto market they quickly seize market share.
Carney described this deal as a trial stage for market entry and that Canada wants to be competitive in the auto market of the future.
"We don't want to competitive in the market of 2000, 2010. We want to compete in the future. That's what's going to get great jobs for Ontarians going forward," Carney said Sunday.
The prime minister says that any Chinese auto production in Canada would have to meet this country's labour standards.
In return for reducing auto tariffs, China plans to cut its tariff rate on canola seed from 84 per cent to 15 per cent March 1 and drop tariffs on canola meal, lobster, peas and crabs until at least the end of the year.
However, there was no mention of canola oil, which is subject to a 100 per cent tariff, and no change was made to the 25 per cent tariff on Canadian pork.
Canada's auto sector has felt the sting of American tariffs, as U.S. President Donald Trump has said that the U.S. doesn't need cars made in Canada.
However, Trump commended Carney for getting a deal with China.
“That’s what he should be doing and 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 said Friday.
This report by The Canadian Press was first published Jan. 18, 2026.
-- With files from Kyle Duggan in Doha, Dylan Robertson in Ottawa, and The Associated Press.
