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Canada Breaks With U.S. on Chinese EVs

The $3 Billion Trade Deal That Splits North America

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January 18, 2026


TLDR: Canada slashed Chinese EV tariffs from 100% to 6.1% for a 49,000-unit annual quota, in exchange for $3 billion in agricultural export access. The deal divides Canadian provinces, angers Ontario auto workers, and creates the first significant crack in North America’s unified China trade wall. Your Canadian inventory planning just got more complicated.

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