Chinese-manufactured EVs will soon be on the roads in Canada, with the first shipment of Geely’s Lotus model shipping to Canada next month, and Chery and BYD coming soon after. The deal between Ottawa and Beijing to allow the vehicles in will open the door for Chinese EVs into North America, a step that Canada has agreed to basically in response to the increase in tensions with the US under Trump.
Carney has been particularly vocal about his strategy to reduce Canada’s reliance on the US, famously calling for Middle Powers to band together in the face of what is increasingly viewed as a failing rules-based order. Much of this is due to the aggressive rhetoric from the Trump administration aimed at a country that has always been one of Washington’s closest partners. Carney’s decision on EV vehicles is a part of a more independent trade policy, and China is more than happy to oblige.
This is a huge opportunity for China to gain a foothold for its EVs on the world’s biggest market, certainly by revenue. This may also serve as a back door into the United States, which Chinese EV makers have publicly said they want. With Chinese EVs already in Mexico, and now about to be in Canada, they are now well poised to enter the US as well.