That's the Plan

The Canadian auto sector will be completely gutted, China will further own Canada, and people won't be able to travel:

As the federal government reviews Canada’s 100 per cent tariff on Chinese electric vehicles, industry insiders warn that ditching it entirely would be “an existential threat” to the Canadian automotive industry.

The tariff, which came into place almost a year ago, faces an automatic review, with results due by Oct. 1. Getting rid of it would prompt harsh retaliation from the U.S., and be the death knell for automotive production here, said the head of the association representing Detroit’s Big Three automakers in Canada.

“There is simply no option but to maintain that tariff,” said Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association. “Getting rid of it would be an existential threat to the industry and all you need to do is look at other countries that have been asleep at the switch on this one.”

The review comes as the federal government attempts to broaden Canada’s trade relationship with China amidst a trade war sparked by tariffs from U.S. President Donald Trump. In the wake of Canada’s EV tariff, China retaliated with a 100 per cent levy on Canadian canola.

Kingston pointed to sales figures that show a rapid growth in sales of Chinese-produced cars in other countries, including Mexico. In 2020, Kingston said, just four per cent of cars sold in Mexico were produced in China. Now, roughly a third of new cars sold in Mexico are made in China.

“That’s what happens if you open the door and we simply cannot take that risk,” said Kingston.