Canada has agreed to cut its tariff on Chinese EVs from 100% down to about 6.1% for a quota of roughly 49,000 vehicles in year one, with room to rise toward 70,000 over several years. The quota relates to low-priced Chinese EVs (around 33,000 dollars or less), which makes them highly competitive in the Canadian mass market and creates a sizable pool of Chinese EVs physically located just across the U.S. border.
Auto sector groups are saying that this is a threat to North American auto jobs and analysts say that illegal transshipping , which is prevelant in other products will happen with the vehicles. They say that Chinese cars that will be allowed into Canada will undergo minimal cosmetic changes and will be sent into the US with markings that they are Canadian products allowing them to dodge 100% of the US tariffs.
Another way the Chinese EV’s could be disrutive is though use of Chinese components (batteries, electronics) in Canadian assembly that then qualifies under USMCA if Chinese content is kept under thresholds. Potential future Chinese‑backed assembly or JV plants in Canada that might try to engineer origin status to access the U.S. market as “Canadian” autos. Indeed there are already discussions between Canada and China about join venture operations of Canadian vehicle manufacturing with Chinese goods and expertise help–all done in Canada but the profits will run to China as well as Canada.
Jeffrey Newman is a whistleblower lawyer whose firm represents whistleblowers revealing violations of export controls, tariff evasions, money laundering, healthcare fraud and other kinds of WB cases. The firm represents individuals both in the United States and other countries. Mr. Newman and his firm staff also represent many physicians across the country who become whistleblowers in healthcare fraud cases. Whistleblower laws in the U.S. allow individuals anywhere with information about export control violations or tariff fraud to reveal the information under The False Claims act or through the Securities and Exchange Commission’s Whistleblower Program. The Firm’s website is at www.JeffNewmanLaw.com and attorney Newman can be reached at Jeff@Jeffnewmanlaw.com or at 978-880-4758
