Canadians warm up to Chinese EVs ahead of tariff reductions

A majority of Canadians say that an electric vehicle (EV) being manufactured in China would have no bearing on their decision to buy it, according to a new Nanos Research Group poll, marking a sharp reversal from 2024 when 61% said they would be less likely to do so. Just 28% now say Chinese manufacturing would discourage them, down from 61% a year ago, while 15% say it would actively make them more likely to buy—up from 9% in 2024.

The poll reached 1,009 respondents and was conducted in late January, shortly after Prime Minister Mark Carney’s announcement that Canada would allow up to 49,000 Chinese EVs per year into the market at a tariff rate of 6.1%—down from the 100% levy introduced under Justin Trudeau in 2024. That earlier measure was intended to align Canada with US trade policy, but China responded by imposing hefty retaliatory duties on Canadian agricultural exports including canola. The new arrangement reverses course: in exchange for the tariff reduction, Beijing agreed to roll back its levies on Canadian agricultural products.

The quota includes a provision reserving part of the annual allocation for vehicles priced below CA$35,000 (US$25,700), aligning with a broader government push to improve EV affordability. Canada has also reinstated a purchase incentive of up to CA$5,000 (US$3,670) for EVs under a CA$50,000 (US$36,700) price threshold, although the rebate currently applies only to vehicles built in Canada or in free-trade-agreement countries—in other words, locking out Chinese-origin EVs. 

At the time of writing, BYD is the only major Chinese automaker currently registered to import passenger cars into Canada, although Chery has been reported as a potential early market entrant. Geely-backed Volvo Cars is also reportedly among those looking to qualify for a portion of the 49,000-unit quota. 

The poll reflects a pattern seen in other regions where Chinese automakers have made recent market entries and slowly won over uncertain consumers. Perhaps nowhere captures this trend more than the UK: going into 2026, Chinese entrants cumulatively accounted for around 10% of all new vehicle sales—almost all of which were EVs or hybrids—roughly double their market share in 2024. BYD and Chery led the charge, with the latter being distinguished as the country’s fastest-growing automaker. It entered the UK in 2024 with the Omoda brand, before following with the Jaecoo and titular Chery brand through 2025. A fourth marque, Lepas, is planned for 2026.

In Canada, however, opposition has been vocal. Conservative leader Pierre Poilievre, who lost to Carney in a 2025 election upset, has characterised Chinese EVs as “roving surveillance systems”, while Ontario Premier Doug Ford labelled them “spy cars”. The Canadian Vehicle Manufacturers’ Association, representing global automakers with a domestic production footprint, warned that connected vehicles pose national security risks comparable to those attributed to TikTok and Huawei. 

Beyond the consumer market, Ottawa’s longer-term objective is to attract Chinese investment into Canadian auto manufacturing, with Industry Minister Melanie Joly expressing a preference for joint ventures between Chinese EV companies and Canadian partners to produce vehicles for both domestic sale and export. 

Unsurprisingly, the government’s position is complicated by US pressure—indeed, Canada remains the largest export market for US-made vehicles. President Donald Trump has also threatened to levy fresh 100% tariffs on Canada should it proceed with the reduced tariff scheme. The country has also experienced a mixed track record with Chinese automotive investment, including BYD’s exit from a Toronto bus manufacturing arrangement it entered in 2019.