BYD Targets Canada EV Market Despite Expected Tariffs

05 Aug, 2024

BYD Targets Canada EV Market Despite Expected Tariffs

Chinese electric carmaker BYD is making moves to enter the Canadian EV market despite the looming threat of higher tariffs. As Canada’s government, led by Prime Minister Justin Trudeau, works on restricting Chinese vehicle imports and considering increased tariffs, BYD’s lobbyists have filed notice with Canada’s federal registry to advocate for the company's entry. The goal is to address issues related to the tariffs on EVs and establish a new business presence in Canada.

Canada is expected to finalize a 30-day consultation on measures to curb Chinese EV imports by August 1, which includes raising tariffs to match those imposed by the U.S. and European Union. The Canadian government is also considering blocking Chinese investment in local factories to protect its auto industry and workers from unfair competition. This comes as Canada has already pledged significant funding to automakers like Volkswagen for developing EV supply chains in Ontario and Quebec.

In parallel, BYD announced a major partnership with Uber Technologies to deploy 100,000 EVs on Uber’s platform, starting in Europe and Latin America before potentially expanding to Canada. Canadian officials and industry representatives are debating whether to impose tariffs close to the U.S. rate of 102.5 percent, though climate advocates argue for more affordable EVs to boost consumer adoption. The situation is evolving, with broader trade actions against China also being considered.