Canada-China EV trade deal faces security and influence scrutiny

Canada’s decision to reduce tariffs on Chinese electric vehicles (EVs) to 6.1 percent is facing scrutiny over national security and potential foreign influence. The reduction, part of a trade agreement reached by Prime Minister Mark Carney, replaced a previous 100 percent surtax. Under the current deal, Canada has an annual import quota for Chinese EVs that is set to rise significantly through 2031.

I-Chung Lai, president of The Prospect Foundation, warned that importing Chinese land vehicles could allow Beijing to “weaponize” technology and pose an industrial threat. This stance mirrors Taiwan’s policy of blocking Chinese-branded vehicles due to security and information concerns.

Further scrutiny has emerged following allegations that a policy proposal urging a rethink of the EV surtax was delivered to the Prime Minister’s Office shortly before the trade agreement was finalized. The proposal was reportedly linked to Shui Shousong, president of the Sino-Canada Entrepreneurs Association, who has been identified in reports as having ties to China’s United Front system. The deal also included tariff relief from China for Canadian agricultural products like canola and lobster.