After the US-Canada trade consensus was reached in January, Chinese automakers didn’t waste any time. They’re moving fast to set up shop in Canada, even though the market isn’t exactly a goldmine.
Taking a cue from Prime Minister Mark Carney’s visit to China just two weeks prior, Chery held its first dealer meetings in Canada. Meanwhile, regulatory filings and insider tips reveal that BYD is planning to open six dealerships and has already started the compliance process to export two passenger car models. Geely’s luxury brand, Lotus, is doing the same, with plans to launch six stores this year. Even Changan’s design director, Klaus Zyciora, confirmed that a dedicated team is ready to tackle the Canadian market.
Let’s be real: the short-term profit picture isn’t dazzling. Canada caps Chinese car imports at just 49,000 units annually (with a 6.1% tariff), capping out at 70,000 over five years. It’s a small pie, and it’s getting sliced by many hands. So why bother?
Industry experts argue that Canada is actually a high-value “strategic jumping-off point.” Here’s the catch: while the US effectively bans Chinese cars, it’s only a matter of time before they find their way in. And Canada is the perfect gateway.
A screenshot showing a Lotus luxury vehicle manufactured in China being loaded for shipment to Canada.
As Reuters points out, Canada isn’t just geographically close to the US; its consumer preferences and automotive regulations are nearly identical to America’s. Plus, major Canadian dealer groups already have US footprints, and American firms operate in Canada. Building these relationships now pays huge dividends later.
“Once the US market finally opens up, these existing channels will be invaluable,” notes one analyst. “It might take years, but Chinese companies have always played the long game.”
Qin Guobing, President of Chery International, didn’t hide his ambitions: “We definitely want to sell cars in the US when the timing is right. Let’s be honest, everyone wants that.”
BYD’s Executive VP, Li Ke, was a bit more cautious, saying they’re still deciding which models to launch, likely starting next year. She pushed back on the “stepping stone” narrative, insisting BYD is fully prepared for the US directly. But Dan Hersh, Global Co-Head of Auto at AlixPartners, sees it differently: “Moving business from Canada to the US will be as easy as flipping a switch when conditions are right.”
Hersh predicts a flood of eager American buyers looking for loopholes. As Chinese cars become available in Canada, US consumers desperate for affordable EVs will likely find ways to cross the border to get them.
Chart by Reuters showing the relentless rise in new car prices in the US.
This trend is rattling the US auto industry and politicians. In March, industry groups sent warning letters to the Trump administration, sparking bipartisan bills in Congress aimed at banning Chinese cars outright.
But what about the everyday American driver? They seem pretty okay with it. With smaller, cheaper cars vanishing from showrooms and prices climbing, consumers are watching closely. Recently, US journalists and influencers flocked to the Beijing Auto Show, catering to a growing domestic appetite. A Cox Automotive survey found that nearly 40% of US consumers are “very likely” or “highly likely” to consider buying a Chinese brand.
Earlier this year, President Trump even told automakers in Detroit, “We welcome Chinese car companies to invest and build factories in the US.”
It seems inevitable. As Reuters columnist Katrina Hamlin noted, the only questions left are *when* and *how* the US removes the barriers. Chinese cars offer better prices and often more stylish designs than legacy giants like Ford or GM. Despite the protectionist tariffs and “tech security” excuses, the resolve to ban Chinese cars is already cracking. The floodgates are opening, one Canadian dealership at a time.
