Unifor says the federal government’s decision to ease restrictions on Chinese-owned electric vehicle imports could cost Canadian auto jobs and undermine the domestic manufacturing sector.
The union, which represents 320,000 private-sector workers including thousands in auto manufacturing, says allowing Chinese EVs into the Canadian market rewards unfair trade practices while putting domestic production at risk.
“This is a self-inflicted wound to an already injured Canadian auto industry,” said Lana Payne, Unifor national president. “Providing a foothold to cheap Chinese EVs, backed by massive state subsidies, overproduction and designed to expand market share through exports, puts Canadian auto jobs at risk while rewarding labour violations and unfair trade practices.”
Timing compounds sector challenges
The policy shift comes as Canada’s auto sector faces pressure from U.S. tariffs on Canadian vehicles and changes to American EV policies. More than one-third of Unifor members at Detroit Three facilities are currently laid off, with several plants sitting idle, according to the union.
Unifor has warned that Chinese automakers quickly capture market share once granted access, pointing to patterns in the European Union, Brazil, and other markets. The union says Chinese vehicles contain virtually no Canadian content, which would also affect the domestic auto parts supply chain.
Trade-off includes temporary seafood relief
The government also removed tariffs on Canadian seafood as part of trade negotiations with China, but the relief expires at the end of 2026.
“Finding a resolution to U.S. auto tariffs just got more difficult as Canada has surrendered the leverage of opening our market to China,” said Payne. “And, in exchange, the reprieve on seafood tariffs that Canada received is only temporary, covering a single fishing season.”
Unifor says the changes weaken Canada’s position heading into the review of the Canada-United States-Mexico Agreement.
