Despite the threat of US tariffs, Canada has introduced a new strategy for electric vehicles, and Carney stated that he will cooperate with China

On the 5th local time, Canadian Prime Minister Carney announced a new national strategy for electric vehicles, stating that he will cooperate with China, make full use of existing and new trade agreements, including the recent electric vehicle cooperation agreement with China, to promote large-scale investment in this field, promote China's establishment of joint ventures in electric vehicles in Canada, and build Canada into "one of the leaders in the global electric vehicle field". In January of this year, during his visit to China, Carney announced that Canada would allow 49000 Chinese electric vehicles to enter the Canadian market at a preferential tariff of 6.1%. The US government has threatened to impose 100% tariffs on Canada if an agreement is reached with China. But Canada ignored the threat from the United States. The British Broadcasting Corporation (BBC) stated that Canada's new electric vehicle strategy is a "plan to move away from the United States".

At a critical moment

According to a statement from the Prime Minister's Office on the 5th, the Canadian government has begun implementing a new national automotive strategy that will make Canada one of the leaders in global electric vehicle production. In order to establish a comprehensive trade system that can enhance the competitiveness of the automotive industry, the Canadian government will maintain equivalent tariffs on US car imports to ensure that Canadian car manufacturers have a fair competitive environment in the domestic market. The statement also stated that Canada has reached a new strategic partnership agreement with China, a global leader in electric vehicle manufacturing, aimed at further diversifying trade and promoting investment growth in the automotive industry. This will drive China to establish new (electric vehicle) joint ventures in Canada and allow a certain number of Chinese electric vehicles to enter Canada.

According to the Canadian Broadcasting Corporation, after visiting a car parts manufacturing company in the Greater Toronto Area on the 5th, Carney explained the new national automotive strategy to the media. According to the new strategy, Canada will restore its consumer oriented electric vehicle subsidy policy, providing subsidies of up to CAD 5000 for consumers who purchase pure electric or fuel cell vehicles, and up to CAD 2500 for plug-in hybrid vehicles.

Canadian television announced on the 5th that Carney's motivation for announcing a new national automotive strategy is to reduce emissions from gasoline powered vehicles on one hand, and to address the trade challenges brought by US President Trump on the other. In the face of the United States' attempt to relocate (North American) automobile production back to the United States, Carney said that the automotive industry supports more than 500000 jobs in Canada and contributes CAD 16 billion in GDP annually, and cannot sit idly by. The Ottawa Plan provides Canadian car manufacturers with more exemptions from US tariffs. Carney said that if the United States insists on imposing car tariffs during the review of the US Canada Mexico agreement, the Canadian government will "develop a tax relief framework for the automotive industry to incentivize companies that produce and invest in Canada.

Ontario Governor Doug, who relies on the automotive industry as a pillar industry, quickly issued a statement welcoming and supporting the federal government's new automotive strategy. He said, "This is a critical moment for Canada. Our economy and sovereignty are under attack. We need to unite as a strong Canada to fight back and defend our workers, businesses, and communities." "Due to US tariffs, the industry is under tremendous pressure," said Kingston, head of the Canadian Automobile Manufacturers Association. The new strategy is "a very welcome move" for the Canadian automotive industry.

We must take good care of ourselves

Regarding the Canadian government's "strategic shift," US Treasury Secretary Vincent threatened on the 5th that "during Carney's visit to China, tariffs on Chinese electric vehicles will be reduced from 100% to 6%. The US will impose 100% tariffs on Chinese electric vehicles. We cannot allow our northern countries to become a gateway for Chinese electric vehicles to enter the US." Earlier, Trump also warned that "if Canada reaches an agreement with China, all Canadian goods imported to the US will immediately be subject to 100% tariffs

Faced with the threat from the United States, the Carney government has clearly made up its mind. On the 5th, The New York Times reported that the Carney administration disregarded the threat from the United States and bet on the future of the automotive industry on electric vehicles, hoping to gradually break free from ties with the United States. On the 5th, Carney stated that these new policies related to automobiles aim to reshape Canada's economy and reduce its dependence on a single trading partner. He emphasized, "We cannot control the behavior of others, but we must take care of ourselves

The Financial Post of Canada reported on the 5th that the new automotive strategy is the flagship policy of the Carney government, which is determined to attract new investment from European and increasingly Asian manufacturers to free the automotive industry from complete dependence on the United States. Last month, Carney visited China and announced the cancellation of 100% tariffs on Chinese electric vehicles, allowing 49000 Chinese electric vehicles to enter the Canadian market with preferential tariffs. Many analysts believe that Chinese electric vehicles are the most technologically advanced electric vehicles in the world. Kani hopes to use this to promote Chinese car companies to invest in Canada.

On the 5th, the Canadian news agency reported that the latest poll conducted by Canadian polling firm Ledger showed that although most people are concerned about retaliation from the United States, as many as 61% of respondents still support more Chinese electric vehicles entering the Canadian market, with a support rate of 72% in Quebec province.

The era of rule-based trade with the United States is over

Egypt's Ehbari News Agency stated on the 5th that the new automotive strategy is seen as part of Canada's long-term vision to ensure economic sovereignty and future growth engines, and its significance goes far beyond industrial policy. It marks a significant transformation of Canada's economic structure towards the future and will also serve as an important springboard for Canada to establish its independence and strong economic position on the global stage. The report states that Canada's "de Americanization" will be a key process in reshaping Canada's "identity" and future.

Canada's actions indicate that the US Canada Mexico agreement is also in jeopardy. "The website of the Quincy Institute for Strategic Studies, a US think tank, stated on the 6th that when Carney announced his automotive strategy on the 5th, he also mentioned the US Canada Mexico agreement that will be reviewed this year. He said that the original intention of the agreement - to eliminate tariffs in North America - is no longer the current goal of the US government. Their approach has changed, we must be prepared for all possibilities.

The report also stated that in the past two days, important figures in the Canadian political and economic circles have expressed support for reducing Canada's economic dependence on the United States. On Wednesday night, former Conservative Prime Minister Harper said, "Canada must adapt to the new geopolitical reality. To be clear, this means we must reduce our dependence on the United States." On Thursday, Bank of Canada Governor McLham said, "The era of rule-based trade with the United States is over. He said that Canada should actively carry out structural economic reforms, expand its domestic market, and achieve trade diversification.