Chinese manufacturersfUS are developing all over the world with cheap and high-technology electric cars, and the latest development in Canada to provide some farm trade concessions in exchange for easing tariffs may build up their penetration in North America. Analysts believe that Canada would be one of the entry points for Chinese EV producers as the domestic market will grow slowly.

U.S officials have come out strongly complaining. In a speech at a Stellantis facility in Ohio, Transportation Secretary Sean Duffy vowed that Chinese automakers are heavily subsidized to take over the production of vehicles globally and pose a threat to the jobs in the US. According to others, the trend is inevitable.

Chinese EVs have advantages that analysts note: they are competitively priced, highly innovative in software, and have connected functions, as well as efficient production. Most of the models are sold at $10,00020,000, which is much lower than the average price of a vehicle in the United States. The Chinese companies have also occupied the loopholes created by the Western car makers, who left small, cheap cars in favor of SUVs and trucks.

The menace is intensified because the world markets are going electric. EV sales in China increased by 17 percent in 2025, Europe by 33 percent, and U.S. electrified vehicle sales by only 1 percent. Tesla has already lost its leadership position in the world of EV to BYD of China.

Governments have been careful because of the fear of data security and dominance in the market. Tariffs and caps are not eliminated, but analysts believe that it is only a matter of time before Chinese car manufacturers will penetrate the Western markets.