Chinese EVs inch closer to the US as Canada slashes tariffs

Canada has announced a significant reduction in tariffs on Chinese electric vehicles (EVs), cutting the import tax from 100% to 6.1%. This move, declared by Canadian Prime Minister Mark Carney, aims to facilitate Chinese automakers such as Geely, BYD, and Xiaomi in establishing a stronger presence in the North American EV market. However, Canada will initially limit imports to 49,000 vehicles annually, gradually increasing to about 70,000 over five years. This policy shift aligns with China's broader strategy to boost EV exports amid potential tariff reductions by the European Union, although the U.S. has yet to follow suit. Despite the tariff cut in Canada, the U.S. remains cautious about Chinese EV imports due to national security concerns and existing trade restrictions. While President Trump has expressed openness to Chinese automakers building EV factories in the U.S., critics warn this could harm the American automotive industry and defense sector. Chinese EVs are competitively priced due to low production costs and