Prime Minister Carney announced the measure after a trip to China.

Prime Minister Mark Carney holds a press conference in Ritan Park in Beijing on Jan. 16, 2026. Sean Kilpatrick/The Canadian Press
Prime Minister Mark Carney concluded his trip to China by announcing that Canada will pull back on its tariffs on Chinese electric vehicles, a move that breaks with U.S. policy.
Carney said that in “exchange for a small piece” of the Canadian car market, he expects that Chinese auto companies will make investments in Canada, including eventually building a factory here.


