Ontario Premier Doug Ford is slamming Canada's new trade agreement with China, saying it's inviting a flood of cheap Chinese electric vehicles with no guarantee of investments.
Prime Minister Mark Carney announced Friday that Canada has agreed to slash its 100 per cent tariff on Chinese EVs for up to 49,000 vehicles per year.
In exchange, China will drop or significantly reduce its retaliatory tariffs on Canadian agriculture products, including canola seed and meal, pork, seafood and peas.
"This is going to be terrible for not only just all the people of Ontario, but especially the auto manufacturers, the supply chain," said Ford during a media scrum Friday.
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He called the deal lopsided and warned it risks closing the door to the U.S. market for Canadian automakers, while raising concerns about how subsidized the Chinese EV industry is and the security risks the cars pose.
"It's just a terrible, terrible, miscalculated decision by the Prime Minister."
Ford has called for the federal government to support Ontario's auto sector by ending the EV sales mandate, which is currently paused, and scrapping federal fees.
The government has framed the deal on EVs as part of a wider new strategic partnership with China that presents enormous opportunities for Canada.
"It's a partnership that reflects the world as it is today, with an engagement that is realistic, respectful and interest-based," Carney said at a news conference in Beijing.
The government noted the 49,000 EVs subject to a lower 6.1 per cent tariff represents less than three per cent of the Canadian market for new vehicle sales. It said it's the same volume of EVs that came in from China in 2023-2024 before Canada hiked tariffs along with the United States in an effort to protect domestic industries.
While the deal comes with tariff relief on agricultural products, there's no promise to invest in Canadian auto manufacturing. The government says that "it is expected" that within three years, the agreement will drive new Chinese joint-venture investment in Canada.
Ford criticized the lack of immediate investment or even firm commitments, and Ontario NDP Leader Marit Stiles also came out against the deal saying workers deserve more.
"Let me be clear: Mark Carney is selling out our auto sector," said Stiles in a social media post. "Our workers deserve guarantees – you don't protect an industry with maybes."
Greig Mordue, associate professor at McMaster University's W Booth School of Engineering, said it's hard to imagine securing a production guarantee with little to no Chinese EV presence in Canada.
"It's a smart policy. Doesn't give us a Chinese auto plant, but I don't think anything would. So this is fine," said Mordue, who previously was general manager of Toyota's Canadian division.
He said the limited quota might not even be enough to incentivize Chinese brands to enter the Canadian market, but could see more China-produced Teslas, Polestars and Volkswagens come in. Either way, it's not enough to affect domestic automakers, he said.
"This has virtually no impact on Canadian production."
He said the quota will also make importers focus on higher-end vehicles at first to make sure they are profitable with limited sales, so it won't likely flood the market with cheap cars.
Longer-term, there could be cheaper options though. The Canadian government said "it is anticipated" that in five years, 50 per cent of the Chinese EVs coming in will have an import price of less than $35,000.
Ford said that while the deal has small volumes now, China is getting a foothold into the Canadian market that it will use to its full advantage.
"They start off with always saying three per cent. Ask people in Brazil what happens to three per cent, turns into 37 per cent. Ask the people over in Europe."
The EU saw Chinese-built electric cars jump from 3.9 per cent of its EV market in 2020 to 25 per cent by September 2023, prompting the block to impose tariffs of between 17 and 35.5 per cent.
The European Commission said companies in China accomplished the gains with the help of subsidies all along the chain of production, from cheap land for factories from local governments to below-market supplies of lithium and batteries from state-owned enterprises to tax breaks and below-interest financing from state-controlled banks.
Ford said the deal raises problems with security, U.S. trade and labour and he's urging the federal government to take a different approach.
"When these Chinese-subsidized spy cars are brought into their country ... they undermine every single autoworker out there."
This report by The Canadian Press was first published Jan. 16, 2026.
-- With a file from The Associated Press.
