Canada's recent trade agreement with China has major implications for the American EV market, according to The Independent.
Canada's government announced lowered tariffs on electric vehicles being produced in China. In exchange, China has pledged to lower tariffs on Canadian canola, a major export, and other agricultural products starting March 1.
This is likely to open the floodgates to affordable small and mid-sized electric vehicles coming into North America. It also runs counter to the American government's preference for big, gas-guzzling cars. Likewise, Mexico has held high tariffs on Chinese EVs in order to protect domestic production.
Experts are still reeling from Canada's move to allow Chinese EVs into the country, and are trying to assess the implications for the auto sector in the U.S.
"China has become this overwhelming machine making inexpensive vehicles. And the fear is that if you give them an inch, they're going to take a mile," said Sam Fiorani, vice president at AutoForecast Solutions, per The Independent.
"The other issue is technology. These vehicles are data centers... and the idea that a state-owned company in China could have access to where a high portion of drivers are going gives them leverage for all kinds of outlets."
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Electric vehicles are cheaper to run and maintain than traditional cars — for one thing, no oil changes — but there are much bigger benefits than saving a few bucks. The widespread switch to EVs is an important step for reducing light-duty vehicle emissions. By going electric, drivers are able to improve local air quality and minimize atmospheric pollution otherwise generated by gas vehicles.
This pollution traps heat in the atmosphere, exacerbates destructive weather patterns, and incurs the costs of intense natural disasters on homeowners, farmers, and society at large.
While the advance of China-produced EVs seems nearly inevitable, experts are still advocating for security precautions before allowing them onto new shores.
"There are a lot of guardrails that have to be put up, but eventually they're going to make their way into all Western markets," said Fiorani, per The Independent.
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