‘Workers in every industry are left more vulnerable,' says Canadian Labour Congress
Canada’s newly announced strategic partnership with China, including a reduction of surtaxes on Chinese‑made electric vehicles (EVs), is drawing criticism from labour groups which warn the move could put thousands of Canadian manufacturing and auto jobs at risk.
Recently, Prime Minister Mark Carney’s first official visit to Beijing produced a new strategic partnership focused on diversifying trade, attracting investment and expanding export markets.
According to the Office of the Prime Minister, the government is responding to “a more divided and uncertain world” by “building a stronger, more independent, and more resilient economy” and “working with urgency and determination to diversify our trade partnerships and catalyse massive new levels of investment.”
Energy, clean tech and EVs
A central feature of the agreement is expanded collaboration in energy, clean technology and climate competitiveness. Both countries are described as energy “superpowers” focused on “expanding two-way energy cooperation – reducing emissions and scaling up investments in batteries, solar, wind, and energy storage.”
To support this and build up the domestic manufacturing sector, Canada will allow up to 49,000 Chinese electric vehicles (EVs) into the Canadian market at the most‑favoured‑nation tariff rate of 6.1%. This volume corresponds to import levels in 2023–2024 and represents less than 3 per cent of new vehicles sold in Canada.
The Office of the Prime Minister says the arrangement is expected, within three years, to drive “considerable new Chinese joint-venture investment in Canada with trusted partners” to protect and create new auto manufacturing careers and “ensure a robust build-out of Canada’s EV supply chain.” Within five years, more than 50 per cent of these vehicles are anticipated to be priced below $35,000, potentially accelerating EV adoption and demand for skills in production, battery technology, infrastructure and after‑sales service.
Workers ‘more vulnerable’: CLC
However, the Canadian Labour Congress (CLC) said the deal “represents a sharp and concerning shift in Canada’s trade and industrial strategy,” and contends that “no sector truly wins, and workers in every industry are left more vulnerable.”
According to the the group, the agreement “drastically reduces Canada’s surtax on Chinese‑made electric vehicles (EVs), creating a pathway for tens of thousands of inexpensive, state‑subsidized vehicles to flood our auto market.” The organisation says this could undermine Canada’s domestic auto industry, jeopardize jobs, suppress future investment and “erode the independent supply chain that sustains thousands of Canadian workers.”
Meanwhile, Unifor issued its own statement, warning that opening the door to China‑owned EV imports “poses extreme risk to Canadian auto jobs and the future of our entire auto sector.”
“This is a self‑inflicted wound to an already injured Canadian auto industry,” said Unifor National President Lana Payne. “Providing a foothold to cheap Chinese EVs, backed by massive state subsidies, overproduction and designed to expand market share through exports, puts Canadian auto jobs at risk while rewarding labour violations and unfair trade practices.”
Unifor said it has “long warned about the risks of letting Chinese EVs flood the North American market,” arguing that if such imports are left unchecked they will cost Canadian jobs, stall domestic investment and increase imports from low‑cost jurisdictions. The union noted that there is “virtually no Canadian content in Chinese vehicles,” and warned that “our independent auto parts supply chain would also be hard hit.”
Previously, Ontario Premier Doug Ford said that by lowering tariffs on Chinese electric vehicles, “this lopsided deal risks closing the door on Canadian automakers to the American market, our largest export destination, which would hurt our economy and lead to job losses,” according to the National Post.
According to two legal experts, as Canada pushes toward an ambitious 100-per-cent zero-emission vehicle (ZEV) sales mandate by 2035, a vital question is emerging - are we truly prepared for the labour market shock this transition may bring?
Auto leverage for farm and fish gains
The CLC similarly questioned the government’s willingness to exchange leverage on industrial and auto tariffs for short‑term agricultural gains. It said “the Government’s willingness to trade hard‑earned leverage on issues like auto tariffs and North American cooperation for temporary tariff reductions on canola and some seafood products is deeply troubling,” calling the relief for agriculture and fisheries “time‑limited, uncertain beyond this year, and insufficient compensation for exposing strategic industries to global competition fueled by massive state intervention.”
Beyond specific sectoral measures, Canada has set an ambitious goal of increasing exports to China by 50 per cent by 2030.
This target comes against a backdrop in which China is already Canada’s second‑largest single‑country trading partner, with two‑way merchandise trade totalling $118.9 billion in 2024. Canadian merchandise exports to China reached $30 billion, while imports were $88.9 billion. China is also Canada’s second‑largest customer for agriculture, forest products and seafood products, with sales of about $13.4 billion in 2024.
