This article originally appeared in The Globe and Mail.
By Daniel Dorman, July 21, 2026
A $25,000 electric vehicle sounds like exactly what Canadian consumers have been waiting for. But when that bargain comes from China, the real cost may have little to do with the sticker price.
Earlier this year, as part of the strategic partnership with China, Prime Minister Mark Carney agreed to allow up to 49,000 Chinese electric vehicles (EVs) into the Canadian market at a favourable tariff rate. These EVs have just begun to arrive with prices between $25,000 to $35,000 – approximately half the current average cost for an EV in Canada. But before Canadian consumers get too excited or seek to jump behind the wheel of a freshly imported BYD or Dongfeng, they should understand why Canada had a prohibitive tariff rate on Chinese EVs prior to this year and what security risks the high-tech automobiles pose to both drivers and the country as a whole.
Less than two years ago, in August, 2024, Canada announced it was implementing a 100-per-cent tariff on Chinese EVs, stating that, “China’s intentional, state-directed policy of overcapacity and lack of rigorous labour and environmental standards threaten workers and businesses in the EV industry around the world and undermine Canada’s long-term economic prosperity.” On the surface, the goal of the tariff seemed to be protecting Canadian workers and the domestic EV industry from China’s coercive trade practices.
However, Ottawa also clearly recognized the national-security threat, stating in the announcement that “vehicles containing technology from China also pose significant risks to the privacy of Canadians, their data and Canada’s national security interests. They collect information from drivers, yet lack transparency on data ownership.” The announcement added that the tariff decision was made in concert with similar levies put in place by then-U.S. president Joe Biden. President Donald Trump has maintained a 100-per-cent tariff on Chinese EVs.
Meanwhile, earlier this year a bipartisan group of U.S. lawmakers introduced bills into both Congress and the Senate that would permanently block vehicles that contain any connectivity software developed in China. The background to the bill introduced in the House of Representatives states the national-security concern clearly: “Modern vehicles integrate advanced communications technology capable of collecting and transmitting vast amounts of sensitive data, including location, operational data and personal information. In some cases, the vehicles can also be remotely accessed and controlled.”
Earlier this spring more than 70 members of Congress sent an open letter to Mr. Trump that specifically raised concerns about Chinese vehicles entering the U.S. through Canada, “In Canada, recent policy changes have significantly lowered tariffs on Chinese electric vehicles, allowing tens of thousands of vehicles into the Canadian market annually … These developments raise serious concerns that Chinese automobiles could establish a foothold in Canada and seek to move into the United States market, and these trends create a clear and urgent risk that Chinese automakers are looking to use Canada … as a backdoor into the United States.”
This risk is now realized: As Chinese vehicles begin to enter Canada, industry experts have reported China’s real goal is getting into the U.S. market. At a time when Canada has failed to secure a renewal of the United States-Mexico-Canada Agreement, the recognized threat of Chinese vehicles entering the U.S. through Canada will surely inflame tensions and put a deal with our largest trading partner further out of reach. Indeed, Americans are so hawkish on Chinese EVs that individual Canadians who purchase the vehicles may not be able to cross the border. But trying to avoid irking our American neighbours is far from the only reason Canada should reconsider uncritically allowing Chinese EVs into the country.
The threat to Canada’s national security is significant. As security expert Brenda Shaffer makes clear in a recent report, “[s]everal Western nations, including the U.K., Israel and Poland, have banned Chinese EVs from military bases and sensitive security installations” and the “British Ministry of Defence has instructed officers not to connect computers or phones to Chinese-manufactured vehicles.” At the very least, Canada should follow suit – ban Chinese vehicles from secure locations and instruct Canadian security and military personnel not to connect their devices.
All of this raises an uncomfortable question for Canadian consumers: If the cars are only cheaper because of China’s state-directed coercive trade policy and forced labour, if driving one could mean being banned from crossing into the U.S. or parking at a military base, and if buying one means driving nails into the coffin of USMCA, do we really want Chinese EVs?
Daniel Dorman is the managing editor and director of operations at the Macdonald-Laurier Institute.
