Canada’s largest private-sector union is sharply criticizing the federal government’s new electric vehicle trade agreement with China, warning it could further destabilize an already struggling auto sector and cost Canadian jobs.
Unifor says the deal struck by Prime Minister Mark Carney would allow up to 49,000 Chinese electric vehicles into Canada each year at a reduced tariff, a move the union calls a “self-inflicted wound” for domestic auto manufacturing.
Speaking to members of Unifor Local 222 in Oshawa, Unifor president Lana Payne warned that the quota would expand over time, eroding Canada’s ability to protect auto jobs. Union members unanimously voted to oppose the agreement, sending a message to Ottawa that they do not support opening the market to subsidized Chinese EVs.
Unifor argues the timing is especially damaging, with the Canadian auto industry already hit by U.S. tariffs and policy rollbacks on electric vehicles. The union says more than one-third of its members at Detroit Three facilities are currently laid off, with several plants idle.
Under the agreement, Canada will lower tariffs on Chinese EVs to 6.1 per cent, down from the 100 per cent surtax imposed in 2024 alongside the United States. In return, China has agreed to significantly reduce tariffs on Canadian exports such as canola seed, canola meal, lobster, peas, and crabs.
Carney has defended the deal as an opportunity for Ontario workers, citing potential interest from Chinese automakers in producing affordable EVs in Canada. Unifor, however, says the agreement weakens Canada’s leverage ahead of the upcoming CUSMA review and risks turning the country into a dumping ground for low-cost imports with little Canadian content.
Ontario Premier Doug Ford also criticized the agreement, calling it “lopsided” and warning it could harm Ontario’s auto manufacturers and supply chain.