China EV tariff deal raises long-term questions for Windsor, Ont. auto sector

Windsor has some long-term worries about the new Chinese EV deal. CTV Windsor’s Chris Campbell reports.

A new federal deal allowing a limited number of Chinese-made electric vehicles into Canada is being described as a modest short-term change, but one that raises longer-term concerns for Windsor’s auto sector and Canadian manufacturing jobs.

Under the agreement, Canada will allow up to 49,000 Chinese electric vehicles per year to enter the country at a reduced tariff, while China eases restrictions on Canadian agricultural exports, including canola, peas, and seafood.

Greg Layson, digital and mobile editor with Automotive News Canada, said the immediate impact on Windsor’s manufacturing base is limited.

“This is a baby step. This is the door opened a crack. It’s not a floodgate. That is the takeaway from this,” Layson said.

“It’s also a deal that contains a lot of words like ‘expects, promises, pledges,’ those kinds of things. So, nothing is really set in stone yet, but it has opened the door to a new market, to some new products and to potentially some manufacturing, all with caveats and concerns.”

Layson said the size of the quota puts the deal into perspective.

“If you were to allow 49,000 EVs into Canada last year, that would have accounted for 2.5 per cent of all the vehicles sold in Canada,” he said.

“It would have accounted for a large percent of battery electric vehicles sold in Canada. It is an increase in the number of purely EVs, but it’s not a huge number in the grand scheme of things in total automotive sales.”

He added that the vehicles entering the market would largely serve a different segment than Windsor’s current auto production.

“We build an EV here, but it’s a muscle car, a Dodge brand owned by Stellantis. That’s a very niche market, very high profit margin market,” Layson said.

“And so, these don’t threaten what is built in Windsor. It doesn’t threaten the battery industry in Windsor that’s starting to grow.”

However, Layson cautioned that the implications could change if the number of imported vehicles grows significantly.

“Where it does affect Windsor is long term,” he said.

“Do we get a factory in Ontario at some point? Do we sell, 200,000 Chinese electric vehicles in a year in Canada? That’s when it becomes a concern for North American auto manufacturing.”

Layson also raised questions about the nature of any future Chinese auto manufacturing in Canada.

“If a Chinese brand were to operate in Ontario, you have to ask yourself how many humans will it employ?” he said, noting China’s reliance on automation and humanoid robots in EV assembly.

“I don’t think it lands us 6,000 jobs that you have traditionally seen at an auto factory. That’s something to be wary of.”

From a consumer perspective, Layson said the deal could lower barriers to EV ownership.

“This is a win for the consumer more than anyone else because these EVs are priced at $35,000,” he explained.

“The cheapest EV for sale in Canada in 2026 is going to be a Kia, and it’s going to be priced at $39,000. So, if you can get $5,000 below that, then it becomes a mainstream middle-class vehicle.”

But, he added that security concerns remain.

“It’s a loss for cybersecurity in some fronts because there are questions about Chinese technology,” Layson said, pointing to previous federal bans on Chinese tech over security issues.

Unifor Local 444 reaction

Unifor Local 444 President James Stewart said the deal places additional strain on an already challenged Canadian auto industry, particularly in Windsor.

“When you look at the whole picture, people need to understand what this really means,” Stewart stated.

“You’re adding tremendous stress to an already overstressed Canadian auto manufacturing segment.”

Stewart said the quota is set to grow annually, while agricultural concessions from China are temporary.

“Today, it’s 49,000 EVs. It’s going to graduate 6.5 per cent every year,” he said.

“What we’re getting in return is some relief on seafood and canola oil, but only for one fishing season.”

He argued the move leaves Canada misaligned with its North American trading partners.

“We’re now out of sync with the U.S. and Mexico,” Stewart told CTV News.

“We’re now misaligned on it. We do need to fix the trade policies with the US. And you can’t help but wonder yourself if Carney has now made a choice, he’s decided to support one industry and turned off support for another. That’s the way I see it at this point. And I don’t see a good resolution moving forward. I really don’t, because once the decisions are made, it’s hard to turn back the clock.”

Stewart said the union remains concerned about unfair trade practices and long-term job losses.

“They do not play by the same rules as the rest of the world,” he said.

“We lose good paying jobs.”

Stewart said he questioned the government’s assertion that the deal could attract new auto investment to Canada.

“When you’re opening the market to a cheaper vehicle, it’s going to do the exact opposite,” Stewart said.

“It’s going to drive investment away, not bring investment in.”

Stewart also warned the agreement could complicate future trade negotiations with the U.S.

“What they’ve done today, I believe, has really caused what was already going to be a difficult CUSMA renegotiation to be extremely difficult,” he said.

“No deal is better than a bad deal. And what’s happened today scares me long term.”

Autoworker reaction

Some workers outside the Windsor Assembly Plant expressed concern about the long-term implications of the deal.

“We don’t know how cheap they’re going to be, but it opens the door for potential problems in the future,” said Sam Impastato, a Windsor Assembly Plant worker.

“It’s a slippery slope after this. It was a big mistake in my opinion, but that’s just my opinion.”

Others said they don’t see an immediate impact on Windsor’s auto sector.

“I don’t have an issue with it,” said Liz Lesperance, a door line leader at the Windsor Assembly Plant.

“We don’t make a small car here in Canada, and we don’t make a small-car EV here in Canada, so I’m not sure how that has any bearing on this plant. We’ll have to wait and see.”

Lesperance added that consumer demand in Canada remains focused on gas-powered vehicles.

“We still have gas-powered vehicles, which is what people want here in Canada,” she said.

“I’m not sure what door would be opened by this.”

She also downplayed concerns about security risks tied to Chinese-made vehicles.

“The spying thing seems a bit of a stretch to me,” Lesperance said.

“People have phones, and there’s not a phone out there that was made in Canada. We have to be honest about that.”

Lesperance said the agreement must be viewed in a broader national context.

“We have to make deals where we have to make deals for the best of Canada,” she said.

“Right now, the U.S. is not the partner we used to have. This is also helping farmers in Saskatchewan, fisheries, and a lot of other industries. It’s not just about us in Windsor.”

She also pointed to recent developments at the plant as a sign of confidence in its future.

“We build the best car in North America here,” Lesperance exclaimed.

“We just got the award for it, and we’re getting a third shift. We’ll have to see what the future holds and how well the cars sell.”

MPP Lisa Gretzky’s reaction

Lisa Gretzky, MPP for Windsor West, issued the following statement to CTV News on the topic:

Windsor–Essex is home to one of the best auto workforces anywhere in the world. Our skilled tradespeople and auto workers have just helped deliver an award-winning product, and thousands of families in our region depend on these jobs to put food on the table. Our local economy depends on it too.

Communities across Ontario are already feeling the effects of the ongoing tariff war. Saskatchewan Premier Scott Moe was with Prime Minister Carney in Beijing, fighting for his province’s canola farmers, yet at a time when Ontarians need real leadership, Doug Ford is nowhere to be found.

We see clearly the consequences of that failure at places like Titan Tool and Die, where workers are on the line after the company gutted the plant and shipped equipment and jobs to the United States. These are good, family-supporting jobs that should have been protected. The Premier has done nothing to stop it.

Doug Ford talks a big game about building Ontario’s auto future, but when it comes time to defend workers, enforce job protections, or ensure global deals actually benefit communities like Windsor, he fails to deliver.

Both Conservatives and Liberals continue to show they couldn’t care less about Ontario workers. New Democrats refuse to accept this, and will keep fighting for good jobs in Windsor-Essex and across Ontario. Ontario’s workers, their families and communities deserve a government that will show up when it matters most.