Chinese-made EVs are now subject to a 100% tariff. What does this mean for Canadians?
Canada’s new 100% tariff on Chinese-made electric vehicles (EVs) aims to protect its emerging EV sector, prevent market flooding with cheaper Chinese EVs, and support domestic production. While the tariff is intended to help Canadian manufacturers “level the playing field,” critics argue it may hinder EV adoption by raising prices, thereby impacting Canada’s environmental goals. The policy follows similar U.S. actions, though the EU opted for a milder 36.3% surtax. In response, China has initiated a WTO dispute and is investigating Canadian canola imports, signalling potential trade tensions. Industry experts debate the tariff’s duration and potential market impacts.
Two thirds of Canadians say the federal government’s mandate imposing that all new cars sold in the country must be electric by 2035 is unrealistic
An Ipsos poll for the Montreal Economic Institute shows that two-thirds of Canadians consider the federal mandate for all new cars to be electric by 2035 unrealistic, and 55% oppose the mandate entirely. Major concerns include the high cost of EVs, cited by 70% of respondents, limited charging infrastructure (66%), and doubts about EVs’ performance in Canada’s cold climate. Currently, only 9% of Canadians own an EV, and among those who don’t, only 24% plan for their next vehicle to be electric. The study highlights potential challenges in achieving the federal government’s EV goals.
Canada's EV market has seen rapid growth but still needs incentives: TD
A TD Economics report urges Canadian federal and provincial governments to reconsider plans to end subsidies for zero-emission vehicles, warning that market growth may stall. ZEV sales surged to over 12% in Canada this year, largely due to incentives, yet experiences in the U.K. and Germany—where incentives were cut—show sharp sales declines. Canada’s federal $5,000 EV rebate will end in March 2025, with several provinces also planning phase-outs. TD recommends restructuring rebates for lower-income buyers, with B.C. and Quebec leading ZEV adoption but facing challenges as subsidies wane.
Buy an EV, save $3,000 per year? A new report says so
A Clean Energy Canada report finds electric vehicles (EVs) offer the highest annual savings for Canadian households. Switching from gas to electric vehicles could save drivers around $3,000 annually. The report also highlights additional cost-saving clean technologies like heat pumps and electric hot water systems, showing savings potential across provinces, especially in Atlantic Canada. However, limited affordable EV options remain a challenge, as many models have increased in price or been discontinued. The report suggests policies to increase affordable EV options and emphasizes incentives to promote cleaner, cost-effective technologies.
GM sees EV squeeze as Canada dials back subsidies, pushes deadlines
General Motors (GM) is concerned about Canada scaling back EV subsidies just as the government mandates significant increases in EV sales. Subsidies up to $12,000 are being reduced or phased out, despite targets for EV sales to reach 100% by 2035. GM warns this could impact adoption, despite EVs climbing to 12.5% of GM sales by Q3 2024. Additionally, GM aims to turn a profit on EVs soon, while upcoming elections could shift policies if the Conservative Party relaxes mandates.