Canada will start importing Chinese electric cars, will the United States follow?

Will North America’s blockade on Chinese electric vehicles be eased? Today, Canadian Prime Minister Mark Carney Announce a deal With China to reduce customs duties on electric cars in exchange for reducing duties on canola products. Carney said Canada will initially allow up to 49,000 Chinese electric cars with a 6.1 percent tariff, although the exact timeline is unclear.

This news comes just days after President Donald Trump He indicated desire to allow Chinese electric vehicles in the United States, despite his administration’s ongoing trade war with China and long-standing concerns about the potential impact on domestic automakers in the United States. At an event in Detroit, Trump said Chinese automakers would be welcome as long as they build factories in the United States and employ American workers.

China is the world’s largest automobile market, and Chinese automakers sell more electric vehicles than any other country combined. The country is particularly known for cracking the code on ultra-cheap electric cars, a type that has eluded competitors in other countries. China is making so many electric cars that the country’s automakers are locked in a heated price war and are increasingly exporting their cars to other countries to reduce their bloated inventories.

Canada will not be the first country in North America to allow the import of Chinese cars. Mexico has been importing Chinese cars for a few years, including brands such as BYD, Chery and Neta. BYD was considering building its own factory in Mexico, though those plans have emerged To be waiting.

But now that Canada is opening the door to Chinese automakers, the question is whether BYD, Geely, and other Chinese companies might soon arrive in the United States. However, the US auto industry is closely intertwined with Canada and Mexico Trump’s tariffs have strained relations With the United States’ neighbors to the north and south. About 5.3 million vehicles are manufactured in Canada and Mexico, 70% of which are destined for the United States.

China certainly senses an impending opportunity. Chinese automakers have been on a media blitz with US-based influencers, showcasing their high-tech, impeccably designed electric vehicles in an attempt to give Americans a sense of what they’ve been missing. It’s clear that influential people love these cars, so will policymakers follow?