Canada is going to start importing Chinese EVs - will the US follow?

"Today, Canadian Prime Minister Mark Carney announced a deal with China to slash tariffs on electric vehicles in exchange for lowering duties on canola products. Canada will initially allow up to 49,000 Chinese EVs at a 6.1 percent tariff, Carney said, though the exact timeline was unclear."

"China is the world's largest car market, and Chinese automakers sell more electric vehicles than practically every other nation combined. The country is particularly famous for cracking the code on extremely cheap EVs - the type that have eluded competitors in other nations. China makes so many EVs that the country's automakers are locked in a heated price war and have been increasingly exporting their vehicles to other nations to whittle down their bloated inventories."

"But now with Canada opening the door to Chinese automakers, the question is whether BYD, Geely, and other Chinese companies could soon arrive in the US. The US auto industry is deeply intertwined with Canada and Mexico, though Trump's tariffs have soured relations with the US's northern and southern neighbors. Around 5.3 million vehicles are built in Canada and Mexico, 70 percent of which are destined for the US."

Canada reached an agreement with China to reduce EV tariffs in exchange for lower canola duties, initially permitting up to 49,000 Chinese EVs at a 6.1 percent tariff. The United States signaled conditional openness to Chinese EVs if manufacturers build factories and hire American workers. China dominates global EV production and is exporting cheap vehicles to reduce excess inventories amid a domestic price war. Mexico already imports Chinese brands and has attracted manufacturing interest from companies like BYD. North American vehicle production is highly integrated, with 5.3 million cars built in Canada and Mexico and 70 percent headed to the US. China still faces significant barriers to entering the US market.

Read at The Verge