"Tariff 100% → 6.1%" — The "North American Loophole" Opened by Canada and the Next Move for Chinese EVs

1. From "100%" to "6.1%"—What Canada's Shift Means

The atmosphere surrounding the North American EV market has suddenly changed. Canada has indicated a policy to reduce the high tariffs it had imposed on Chinese-made EVs and establish limited import quotas, making a "second foothold in North America" more realistic for Chinese manufacturers.

There are two key points.
The first is the "tax rate." The previously heavy additional tariffs have been eased, creating room for Chinese-made EVs to enter at levels closer to the general tax rate. The second is "quantity." By setting a limit rather than allowing unlimited imports, a "safety valve" is left to address domestic industry and political backlash.

This combination offers consumers the benefits of "choices and prices" and provides manufacturers with a "foothold for market entry." Meanwhile, for neighboring the United States, the mere increase of Chinese EVs somewhere in North America is provocative in terms of both geopolitics and industrial policy.

2. Why Chinese EVs are "One Step Closer to the U.S."

The U.S. market is still protected by high barriers. Not only tariffs but also regulations and security concerns regarding in-car communications, software, and data handling serve as substantial barriers to entry.

Therefore, instead of making a "frontal breakthrough" into the U.S., Chinese manufacturers find it more feasible to first advance sales, services, and brand formation at another point in North America, preparing supply and sales networks. Expansion in Canada could serve as this "warm-up exercise."

Furthermore, North America is not monolithic. It is said that the presence of Chinese cars (including EVs) is already increasing in Mexico, and if Canada additionally opens its doors, the route of penetration from the "periphery to the inside of North America" will become more complex.

3. What Provokes the U.S.: Price, Supply Chains, and "Connected Cars"

The reason this topic doesn't end as mere "tariff news" is that EVs are a complex of "batteries, materials, semiconductors, and software."

• Price Competitiveness: Chinese EVs are strong in terms of price. The combination of low-cost financing, a massive supply chain, mass production scale, and a strategy of prioritizing market acquisition over profit makes them appear attractive compared to the average new car price in North America.

• Supply Chains and Dependence: The more battery materials and components are sourced from China, the more political and sanction risks companies face.

• Data and Security: Recent cars are "driving smartphones." As communication functions, sensors, maps, navigation, and cloud integration become standardized, data handling is increasingly linked to national security.

The emphasis by U.S. authorities on "not allowing entry into the U.S." is not just about stopping them at the border. There is a concern that the increasing presence of Chinese entities within North America itself could lead to "regulatory erosion" or "supply chain detours" in the medium to long term.

4. Can Canada Balance "Consumer Benefits" and "Political Risks"?

The challenge for Canada is that while the benefits are clear, so too is the backlash.

• Benefits: Price competition makes it easier for EV adoption to progress. Options also increase. It's a welcome development for households.

• Risks: Domestic automotive employment, related industries, and relations with the U.S. The North American supply chain is highly integrated, and a "policy shift in Canada" could potentially affect the U.S.'s stance towards Canada, including trade negotiations and agreement reviews.

What is important here is the "setting of quotas." Compared to unlimited release, political explanation is easier. However, conversely, from the moment quotas are set, "allocation of quotas," "target vehicle types," "price conditions," and "safety standards" become the main battleground. Poor system design could leave consumers and companies with half-baked results.

5. Reactions on Social Media: Opinions Divided into "Consumers," "Industry," "Security," and "U.S. Relations"

Reactions on social media are divided into four main points. Here, we organize the noticeable trends in various forums, social media, and industry posts as representative opinions (Note: This is not a comprehensive public opinion poll but a summary of "types of arguments" seen in posts).

A) "Welcome Competition. Finally, Pressure to Lower Prices"

The most common perspective is simply that of the "buyer."

Comments such as "Good news for Canadian consumers," "If we can buy cheaper, better-performing EVs, it's welcome," and "This could be the trigger for existing manufacturers to seriously lower prices" are prominent. Regarding import quotas, there is also the perception that "starting small is realistic."

B) "Jobs and Industry Won't Survive. Domestic Manufacturers Will Ultimately Suffer"

Next most common is the sense of crisis from the "maker's side."

The narrative includes "Subsidies and overproduction are behind the low prices," "Manufacturers and suppliers unable to withstand price competition will emerge," and "In the medium to long term, this will lead to industrial hollowing out." Posts expressing concern about the impact on domestic employment, including reactions from politicians and state governments, are common.

C) "Connected Cars Are 'Security Itself'"

A significant number of posts strongly emphasize the "data and security" perspective.

Concerns such as "The origin of in-car OS and communication modules is problematic," "Entering through places with loose regulations creates loopholes," and "Personal data and location information are worrisome" are spreading along with news article citations.

D) "Ultimately, This Is a 'Card Against the U.S.' / 'Fallout of Trade Wars'"

Finally, there is the geopolitical interpretation.

Views include "The more U.S. protectionism strengthens, the more Canada wants to diversify trade," "This is more about 'reducing U.S. dependence' than approaching China," and "U.S. pressure ironically benefits China." On forums, this is often discussed in conjunction with criticism of U.S. politics.

6. What Happens Next: The Battle Shifts to "Localization" and "Regulatory Compliance"

In the short term, the specific operation of import quotas and the vehicle types and manufacturers involved will be focal points. However, in the medium term, there are two larger themes.

• Localization (Factories, Employment, Material Procurement): Since imports can easily become political issues, there is pressure on manufacturers to "produce locally," "hire locally," and "procure materials locally." In the U.S., discussions about "if you build a factory" arise in this context.

• Regulatory Compliance (Cybersecurity, Software): In an era where software poses more barriers than hardware, the ability to align with standards, audits, and data management criteria will determine entry feasibility.

In other words, this news is not merely about tariff fluctuations. It is akin to a starting signal indicating that the focus of the North American market is shifting from "price" to "regulations and security," and further to "production location." The next challenge for Chinese EVs is not whether they can "enter the U.S." but whether they can "take root in North America."

Reference URLs
https://www.reuters.com/world/china/canada-china-set-make-historic-gains-new-partnership-says-carney-2026-01-16/
- Supplement on the content of the Canada-China agreement (6.1%, 49,000 units, 100% tariff introduction in 2024, past export numbers, etc.).

https://www.reuters.com/business/autos-transportation/us-says-canadas-decision-allow-imported-chinese-evs-is-problematic-2026-01-16/
- U.S. government opposition and statements (e.g., "not allowed into the U.S.") and explanation of in-car cyber regulations as barriers.

https://apnews.com/article/china-canada-carney-xi-beijing-b71c1b67d3489a8b4058c650152b0cb9
- Organization of Canada's reduction of tariffs on Chinese EVs, deviating from U.S. alignment, and exchange conditions with agricultural tariffs.

https://apnews.com/article/china-canada-us-xi-carney-trump-404596761e826bbdc1e0313062902137
- Context related to U.S. relations (e.g., "strategic autonomy") and supplementary geopolitical implications of the agreement.

https://www.jetro.go.jp/biznews/2024/08/77edbf39e7e223a0.html
- Confirmation of the background to Canada's imposition of "general tariff rate of 6.1% plus an additional 100%" on Chinese-made EVs in 2024.

https://www.reddit.com/r/worldnews/comments/1qebyr8/canada_agrees_to_cut_tariff_on_chinese_evs_in/
https://www.reddit.com/r/cars/comments/1qehish/canada_to_allow_import_of_cheap_chinese_evs_49000/
https://www.reddit.com/r/EVCanada/comments/1qefuzo/canada_china_slash_ev_canola_tariffs_in_reset_of/
https://www.reddit.com/r/teslacanada/comments/1qefzu2/canada_drops_tariff_from_100_to_61_on_chinese/
- Examples of social media reactions (consumer benefits, industry protection, security, U.S. relations, etc., posts referenced to extract discussion points).