General Motors' chief executive voiced sharp concern over a new Canadian arrangement designed to allow thousands of low-cost electric vehicles from China into the Canadian market at a lower tariff rate. Speaking at an employee meeting on Tuesday, Mary Barra described the development as troubling for the North American auto industry.
Barra said she could not account for the reasoning behind the decision, telling staff, "I can’t explain why the decision was made in Canada." She added, "It becomes a very slippery slope." The comments were directed at a policy change announced earlier this month that establishes a reduced tariff level for Chinese-made EVs entering Canada.
In her remarks, Barra emphasized a perceived imbalance in how Chinese automakers operate domestically. She noted that those companies benefit from high import tariffs applied to foreign-made vehicles in China and face technology restrictions that constrain foreign competitors in that market. She argued that, under those circumstances, easing access for Chinese EVs into Canada raises questions about reciprocal market conditions.
Barra also framed the issue in geopolitical and industrial terms, saying that permitting broader entry of Chinese auto brands into Canada runs counter to ongoing U.S. initiatives to strengthen manufacturing and national security across North America. Her comments underline a tension between trade policy decisions made by Canada and broader regional policy goals articulated by U.S. stakeholders.
The executive highlighted the practical links between the U.S. and Canadian auto sectors. Automotive supply chains across both countries are closely integrated, with vehicle components and finished vehicles moving under trade arrangements that have been in place for roughly 30 years. That integration means policy shifts in one country can have direct implications for production and distribution patterns across the border.
Canada is also an important sales market for U.S. automakers. In 2025, General Motors, Ford Motor, and Stellantis together sold more than 700,000 vehicles in Canada, a volume that underscores the market's significance to major North American manufacturers.
Bottom line: GM's chief executive publicly questioned the rationale and potential consequences of Canada’s lower tariff arrangement for Chinese electric vehicles, citing competitive asymmetries, implications for regional manufacturing and national security, and the deep integration of U.S.-Canada supply chains.