Canada Rethinks EV Tariffs Amid Demand

The electric vehicle landscape in Canada is evolving. Although nearly all EVs sold in the country are manufactured in North America, a recent Clean Energy Canada poll reveals that Canadian consumers may prefer more affordable options from European and Chinese brands. With a majority supporting reduced or eliminated tariffs on Chinese EVs and broad backing for opening Canada’s auto market to foreign-certified models, the polling indicates a growing disconnect between current policy and consumer desires.

Summary Points

• 53% of Canadians support reducing the 100% tariff on Chinese EVs to balance affordability and domestic protection.
• 29% favor removing the tariff altogether for lower costs and avoiding trade retaliation.
• Only 19% support maintaining the full tariff to protect Canada’s auto sector.
• 70% back opening the market to EVs meeting European safety and environmental standards.
• 58% want to maintain current emissions regulations in alignment with U.S. and California levels.
• 45% of Canadians are now inclined to buy an EV—down from 58% in 2022—with strongest interest in Quebec (55%) and B.C. (53%).

Canadians Want More Affordable EVs

According to Clean Energy Canada, 53% of Canadians favor a lower tariff on Chinese EVs—down from the current 100%—to strike a balance between industry protection and consumer affordability. Another 29% argue for eliminating the tariff altogether to enable access to the lowest-cost electric cars and reduce risk of Chinese trade retaliation. Only a minority, 19%, wish to maintain the full tariff to shield domestic manufacturers, aligning with U.S. policy. The breakdown reveals limited partisan division, with Conservative support at 23% and NDP at 15%.

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Support for an Open Auto Market

When asked if Canada should allow any vehicle certified by European standards—safety and emissions—to be sold domestically, a commanding 70% answered “yes.” This openness could expand Canadian EV choices to include affordable models like BYD’s Seagull and Dacia Spring, currently unavailable due to tariff and certification constraints.

Emissions Policy Remains a Priority

On maintaining current emissions standards (modeled after U.S. and California policy), 58% of those surveyed said Canada should stay the course, while 18% favored weakening standards to follow the U.S., and 24% were unsure.

Interest in EV Ownership Declines

Despite growing availability, Canadian interest in EVs has declined. Only 45% now indicate they are likely to buy an EV as their next vehicle—a drop from 58% in 2022. Regional and age variations are significant: interest peaks among 18–29 year-olds (57%) and residents of Metro Vancouver (69%), while dipping to 28–29% in Alberta, Saskatchewan, and Atlantic provinces, and 36% among those aged 60+.

Providing potential buyers with more information boosts consideration in urban areas such as Metro Vancouver and the GTHA, where interest is highest.

Analysis: Cost Remains the Main Barrier

Clean Energy Canada’s Trevor Melanson emphasizes that Canadian public support for EVs remains strong, especially among younger consumers—but high sticker prices continue to inhibit adoption. He points out that, globally, high-quality yet more affordable EV options are available—and Canadians want access to those.

Conclusion

The Clean Energy Canada poll reveals a clear appetite among Canadians for more affordable and diverse EV choices, including models from China and Europe. With a majority supporting tariff reduction or elimination, and strong backing for opening the market to globally-certified vehicles, current trade and tariff policies appear misaligned with consumer demand. As EV adoption goals and emissions standards loom on Canada’s policy horizon, aligning incentives with market desires—especially on cost—will be critical to accelerating the country’s transition to zero-emission vehicles.