GM Canada Welcomes Potential China EV Tariffs as BYD Eyes Market Entry

The Canadian head of General Motors is optimistic about the potential impact of tariffs on Chinese electric vehicle imports as major producer BYD eyes the market.

“We’re pleased with the government’s consideration of these issues,” said Kristian Aquilina, president of GM Canada.

“A competitive and fair market environment encourages us to make significant investments and create employment opportunities,” he added.

The federal government recently concluded a 30-day consultation on whether to impose tariffs, similar to the U.S. and EU, to address China’s robust production capacity in the auto sector.

Canada’s auto industry faces challenges due to China’s state-driven policies and practices, leading to what the government calls “unfair competition.”

While not directly naming Chinese producers, Aquilina expressed similar concerns.

“Addressing an unfair playing field is crucial, and it’s important for the government to thoroughly review the facts,” Aquilina commented.

He referred inquiries about the tariffs to the Canadian Vehicle Manufacturers’ Association, which advocates for alignment with U.S. policy to support the EV industry’s growth.

“Transitioning takes time, and we must ensure adequate support for these investments and new facilities to thrive,” said CVMA president Brian Kingston.

Harmonizing with the U.S. would also strengthen North American trade discussions set for 2026, Kingston noted.

“The time is now. Let’s implement these policies to show solidarity with the U.S. in dealing with China,” he urged.

Various groups, including Unifor, Global Automakers of Canada, and the Canadian Chamber of Commerce, show support for the tariffs, while Clean Energy Canada raises concerns about limiting affordable EV options.

Potential tariffs could be significant, with the U.S. increasing tariffs to 100 percent in May, and the EU imposing tariffs up to 38 percent.

Currently, only Tesla imports Chinese-made EVs to Canada, subject to a six-percent tariff.

BYD, a major Chinese EV producer, is considering entering the Canadian market, according to recent lobbyist registrations.

The company stopped gasoline-only models in 2022 and sold over three million EVs last year, offering the Seagull EV starting at around $14,600.

GM recently discontinued the Chevy Bolt EV but plans to relaunch it in the future, along with the new Chevy Equinox EV retailing for approximately $50,000.

Despite rising car prices, GM aims to provide affordable EVs with significant range to Canadian consumers.

EV sales fluctuate, with some producers adjusting their plans in response to market changes.

The transition to EVs has its challenges and opportunities, necessitating flexibility and adaptability, according to Aquilina.