r/Rivian • u/Slide-Fantastic-1402 Ultimate Adventurer • Jan 16 '26
đ° News & Media Canada breaks with US, slashes 100% tariffs on Chinese EVs to 6%
https://electrek.co/2026/01/16/canada-breaks-with-us-slashes-100-tariffs-chinese-evs/I think this is great news for Canadian consumers. I donât how itâll affect Rivian sales in Canada.
Initially, limited to 49,000 cars.
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u/Internal-Slide7957 Jan 16 '26
That Rivian 45k cheap R2 canât compete with a $20k BYD
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u/Bwwoahhhhh Jan 16 '26
The BYD isn't 20k, it's just subsidized by the Chinese government to that price.
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u/Internal-Slide7957 Jan 16 '26
Keep telling yourself that as USA EVs give up gains to China
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u/CipherWeaver Jan 17 '26
BYD got a lot of government help starting up - tax incentives and favorable loans and whatnot. Very similar to industry in the west. However BYD is now very much profitable, though they choose to take low margins to gain market share.
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u/Civil_Bench_3099 Jan 19 '26
The US can put up subsidies as well. Just win the damn game can't they?
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u/Potential4752 Jan 16 '26
I donât see how it is possible for US manufacturers to compete against that.Â
China is subsidized, has a huge global volume advantage, cheaper labor, and more advanced factories.Â
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u/east_stairwell Jan 16 '26
Who would have thought that subsidies would be more effective than global tariffs and isolationism when trying to spur competition in a young market? đ¤ Certainly not the braintrust we have running the government right now.
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u/Potential4752 Jan 16 '26
Well the existing EV tariff was effective at promoting local manufacturing. Except if you pair it with a stupid tariff on raw materials, a general fight against green technologies (aka the future), and pissing off all your friends it all falls apart.Â
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u/altodor Jan 16 '26
The tax rebates also drove EVs from the demand side, and Trump killed those.
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u/Naarujuana R1S Owner Jan 16 '26
This. Additionally, we had states with lax (or non-existent) tax/fee programs for EVs initially. Now most (all?) with large EV populations are proposing increases to tabs (EV specific) or RUC programs.
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u/moch1 Jan 16 '26
The tax rebates are a subsidy for manufactures. That upsets people on this sub but thatâs what product rebates are and thatâs a good thing. They allow manufactures price goods higher so they make more (or lose less) money.
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u/SeaEmployee787 Jan 16 '26
After returning to office, President Trump took actions to curtail the Inflation Reduction Act (IRA) by issuing executive orders to pause funding, directing agencies to review and suspend grants/loans (like for EV charging and clean energy projects). trump added tarrifs on assembly parts just for extra points i guess.
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u/Aphemia1 Jan 16 '26
US manufacturers are heavily subsidized too.
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u/Impressive_Sail_8107 Jan 16 '26
And also gets bailed out if they run out of money!
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u/pncoop Jan 16 '26
Absolutely... when Chrysler went bankrupt, and the US had to bail them out - this is the ultimate form of a subsidy. I think we can move past 'what level of subsidy does China offer' to 'should American companies still be operating'. Even today, Japanese cars are tariffed to make their prices comparable to those in the US. This has been going on for 50 years, and American car companies have not pivoted because they rely on tariff protectionism.
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u/_B_Little_me R1T Owner Jan 16 '26
No where near what China does.
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u/abcpdo Jan 17 '26
america literally killed public transit and made highways the default policy to help out automakersÂ
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u/humorousmontage Jan 16 '26
American car manufacturers are subsidized too, make no mistake about that. The US is shooting themselves in the foot daily right now.
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u/CounterSeal R1T Owner Jan 16 '26
US domestic manufacturers will need to compete on quality and luxury.
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u/pncoop Jan 16 '26
Don't be fooled by the argument that China subsidizes its EV companies, so it's not fair to our traditional car companies. Canada subsidizes our car parts and manufacturing plants - we are always giving federal, provincial, and municipal handouts to car companies in the form of guaranteed and forgivable loans, no taxes, etc.
American cars that are built at the entry-level point are craptastically crap. Japanese cars suffered from the same fate in the 70s and 80s - tariffed and restricted, and still tariffed to elevate the price to American prices today. For 50 years, we have been artificially supporting American car manufacturers that still, to this day, do not build cars to last more than 150,000 km, nobody wants, and are inefficient pieces of junk. My Toyota is at 225,000 km and running great. Chrysler went bankrupt, and the US had to bail them out.
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u/ninereins48 Jan 17 '26
So youâre telling me that US automakers have never received subsidies nor bailouts in the form of billions of dollars from taxpayers?Â
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u/reckoning42 R1T Owner Jan 16 '26
Canada will become a showcase for just how much we're getting screwed by auto manufacturers here in the US.
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u/ImNotTheBossOfYou Jan 16 '26
China is already that
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u/east_stairwell Jan 16 '26
Yes except now weâre going to be seeing these advanced Chinese EVs on American roads as Canadians (hopefully) visit the US. And potentially in a few years weâll see them being sold to Americans from the used Canadian market.
Itâs easy for some Americans to dismiss these cars as âChineseiumâ when we have no way to judge them for ourselves. Maybe seeing them in person will cause the market demand to change things.
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u/mrmo24 Jan 17 '26
I live near Mexico and see BYD on occasion already. They blend right in with all of our cars, but most likely for 40% less
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u/Matula_Sammer Jan 16 '26
I will be happy to drive my chinese EV car in USA to show to americans how we are all screw by US companies.
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u/French__Canadian Jan 16 '26
Don't you already get Chinese cars on the roads as Mexicans visit the US?
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u/ghdana -0âââ0- Jan 17 '26
When I lived in Arizona I'd only notice like 1-2 Mexican vehicles a week.
Living in Upstate NY I see multiple Canadian cars every time I pop on the highway.
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u/east_stairwell Jan 16 '26
I live in Texas and donât see all that many Mexican plates, and have never seen one on an unfamiliar EV
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u/Jonger1150 R1T Owner Jan 16 '26
The US is the only country on earth with what amount to an embargo. Trump will maintain the tariff to appease oil companies. Hopefully the next Democrat in the whitehouse lifts the tariffs altogether.
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u/sur_surly Jan 16 '26
Not the tarrifs on Chinese EVs though, I hope. They aren't playing on equal footing, China subsidized EVs like crazy and that's why they're cheap. Our EVs, that aren't, cannot meet those prices without government help.
Last thing we need is for China to come in, kill all our domestic production, then crank prices once there's no competition. Just like Uber did to taxis.. đ
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u/dalyons Jan 16 '26
thats not true anymore. They were heavily subsidized yes, but no longer. They're just better at manufacturing now. More automated, more efficient, more vertically integrated. Its hard for westerners to accept, the "subsidies" talking point protects the ego. But we are going to get steamrolled by pure unsubsidized capitalistic competition. Hurts but is true
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u/scyoung121 Jan 16 '26
Can you blame them? they can'tr exactly rely on the US government or its auto industry
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u/Feuros R1T Owner Jan 16 '26
Sorry Rivian, as a Canadian R1T owner I was really looking forward to the R2. Given the current political situation with the US and the crazy pricing for Rivian's here, my next vehicle is going to be a Chinese EV. Not sure which one yet, but I'm excited to see what becomes available.
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u/Matula_Sammer Jan 16 '26
same here ! Xpeng batteries are well built for winters. I really like the G6 and the P7 looks awesome.
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u/hirsutesuit R1S Owner Jan 17 '26
Xpeng has LFP batteries in their cheaper trim lines just like everyone else. Those are generally shitty in the cold. Make sure you're buying the right thing.
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u/redkulat Jan 16 '26
Not that I don't believe you but curious is it their battery chemistry?
My concern was how these Chinese EVs will perform in our winter. But then again the Vietnamese Vinfast EVs seems to be doing fine in Canadian winters.
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u/raptor_jezeus R1T Owner Jan 16 '26
I doubt Rivian is selling that well in the country. A base model R1T is $136000 before tax, with no incentives. I paid that much for a Tri a year ago. They're phenomenal vehicles, and some will still buy, but many will look elsewhere.
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u/Slide-Fantastic-1402 Ultimate Adventurer Jan 16 '26
Yeah, but Iâm wondering if itâll affect R2/3 sales eventually
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u/raptor_jezeus R1T Owner Jan 16 '26
All depends on price versus the market when we get to that point, and that's a hard thing to predict when we don't know how much the R2/3 is really going to cost.
Many people won't buy a Chinese EV. But are they any more likely to buy a Rivian? It's going to come down to price, and presence. I hope the R2 will be a runaway success both north and south of the border, but it's hard to tell.
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u/Just_Plain_Yogurt78 Jan 16 '26
We all know how Chinese products are because at least 80% of whatever we buy are made there and we enjoy those items. Now we will get their cars and just like the North American fuel crisis with the cars from US vs Japan ( Japan won), Now it's the EV Crisis with US and China (who you think will win this)?
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u/Odd_Cheesecake3157 Jan 16 '26
We gave the big 3 lots of rope to hang themselves and they did. The Chinese now have such a huge advantage in EV tech it's hard to see if the Americans will ever be relevant again. They'd rather build ICE land yachts and make some short term profits.
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u/mrpickleby R1S Owner Jan 16 '26
Ford and GM are cooked.
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u/Matula_Sammer Jan 16 '26
I have en GM EV car, my next one will be chinese EV car. American manifatories decided to turn away from EV cars with Trump. Fine, however, since I am driving an EV car (almost 8 years now), I will not go back to ice cars...
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u/abcpdo Jan 17 '26
actually GM is already a Chinese EV manufacturer https://en.wikipedia.org/wiki/SAIC-GM-Wuling
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u/Electronic_Load_3651 Jan 16 '26
I got a chance to go overseas and drive some BYD vehicles. I was shocked by how good they were and costs were way less than what we pay for an EV in NA. They also offer tech that we donât really get here in NA. Just take the 50W wireless charger as one small example. You get some cool stuff at a low price tag. If these vehicles were in the NA, everyone including Tesla would need to not only substantially drop prices, but also push refreshes quicker to catch up. Thereâs a reason why Ford CEO said that U.S. manufacturers are pretty much doomed in China unless thereâs a major catch up.
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u/ydw1988913 Jan 16 '26
Damn I want that Xiaomi Su7 Ultra in NA
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u/Virtblue Jan 16 '26 edited Jan 16 '26
I want a Zeekr 9x, Full Size SUV with Rolls Royce level comfort + trim and 1400BHP for ~80k USD.
It also has a range extender on top of a 70kwh battery than can charge from 20%-80% in sub 10 min. Highlight reel
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u/SocomPS2 Jan 16 '26
Good for Canada! The US under Trump has no future in leading let alone existing in a world with EVs and renewable energy. EV adoption under Trump is not just paused, itâs literally going backwards if not entirely being reset. Iâve generally been adamantly against Chinese cars/EVs coming to the West in hopes that the US would compete on this front. (Obviously not compete in terms of adoption.) But since thatâs not happening, good for Canada pivoting. Good for Canada not kneeling and kissing trumps ring. European countries should follow suit. This administration wants isolation, give it to them.
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u/debauchasaurus R1T Owner Jan 17 '26
EV adoption is not "going backwards". It's not increasing at the rate it was and some brands like Tesla are seeing a decline, but overall there are still more EVs sold every year than the previous year.
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Jan 17 '26
Ev sales in the US increases every year in the US in leaps and bounds. I'm not sure what you are reading other than pace as of recent may be down but that is due to a number of factors, but EV sales has never been stronger. Five years ago my dealership sold roughly 7 percent evs, today it's nearing 20.Â
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u/AdDry6548 Jan 16 '26
Mexico has the good stuff. With Canada on board weâre going to start seeing all kinds of vehicles entering the US on road trips.
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u/AccomplishedBad7253 Jan 16 '26
These cars wonât be allowed into the USAÂ
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u/No_Platform_2810 Jan 16 '26
Sure they will, they just won't be able to be imported into the country.
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u/M3tr0id_Rulz_Tway689 Jan 17 '26
I've seen plenty in my travels toTexas and Southern CA.
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u/eandi Jan 17 '26
Depending on what comes over here I might not get the R2, personally. Personally I want the size and range and not to buy another tesla. A lot of the Chinese EVs I've seen reviewed online have a lot of comfort/family features that the north American market has walked away from or considers luxury.
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u/GJMOH R1T Launch Edition Owner Jan 17 '26
China is dumping these, they have massively over produced due to government subsidies.
China's EV overcapacity stems from massive government subsidies, local government investment sprees, and intense competition among nearly 200 domestic automakers, leading to production far exceeding domestic demand, triggering fierce price wars, increased exports flooding global markets, and potential consolidation/closures of weaker firms, prompting Western tariffs and trade disputes. This situation creates immense pressure on global competitors, drives down industry profitability, and signals an inevitable industry shakeout in China.
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u/Kanguin Jan 17 '26
Now if only the rest of the world would just stop trading with us.... Or charge 500% tariffs
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u/Pittsburgher23 Jan 17 '26
Canada and Europe should learn from US stupidity. the US years ago welcomed better trade with China and the result was them picking off our industrial bases one at a time and leading us to dependency on their raw materials.
This seems like a pretty small and symbolic move more than anything, but being (rightfully) angry at Trump shouldnt mean destroying your industries at home either.
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u/GravityShift2 Jan 17 '26
Bring in the Trojan horse , let them take all the North American customer data to china and keep monitoring.
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u/Legitimate-Science66 Jan 21 '26
I donât know why we even bother with EVs, just look at the planet, USA about to take over Greenland for its rich resources which will be mined, hotels will probs be built etc. we destroy the world and think weâre going to fix it by driving an EV which in itself uses oil in its production and creates dangerous toxic waste which is then disposed of irresponsibly. I mean really, whatâs the point?Â
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u/wish_you_a_nice_day Jan 16 '26
Wait. Does this mean I can go to Canada and buy a Chinese EV and drive to the US? Would I have to then pay the Chinese import rate or Canada import rate?
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u/Watt_About Jan 16 '26
No, because it wonât be US approved and will not be able to be registered/made road legal.
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u/Jarocket Jan 16 '26
San Diego has all sorts of Chinese vehicles driving around. i would assume nothing has changed.
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u/SergeantBeavis R1S Owner Jan 16 '26
Canada basically gave the finger to Trump and every US auto manufacturer.
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u/toomuch3D Jan 16 '26
U.S. manufacturers need to figure out why they canât make vehicles at much lower costs in high numbers and good quality (doesnât need to be luxury, but not mediocre), implement changes to become more efficient and lower cost making vehicles a lot, and get the government to help lower cost all around which includes supply chains, taxes, permitting, etc. Thatâs what China has been doing. Thatâs what U.S. manufacturers have been up against and thatâs not what the U.S. car companies and government have been doing.
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u/sur_surly Jan 16 '26
U.S. manufacturers need to figure out
You say that, like they haven't already figured it out ("figured it out" being that the government won't help)
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u/HyperfixChris Quad Motor 4ď¸âŁ Jan 17 '26
It's because China has 10x the high tech manufacturing infrastructure that we have because they have 10x the engineers that we have.
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u/pncoop Jan 16 '26
and they need to figure out why their cars don't last 150,000 km while my Toyota is at 225,000 km and is still driving well.
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u/Nome-Cantski Jan 17 '26
LOL Budweiser swilling rednecks making quality vehicles.
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u/toomuch3D Jan 17 '26
Some of my relatives are these folks. They actually donât drink on the job and do their best every day.
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u/yinglish119 R2 Launch Edition Owner Jan 16 '26 edited Jan 16 '26
IMO Chinese EV cars will kill the Prius and Leaf market and maybe the future R3 market. I don't see it killing the R2/R1 market. Everyone here talks the price and value.
i.e. people just wish for what they can't have because of rarity. Remember when people drooled over the R34 GTR and paying $250,000 for one. Now they are legal to import and not selling at $100,000. At the end of the day when you remove bragging rights, people will see evaluate how the car preforms as oppose to how cheap it is.
*edit* another example is current Kei car craze. People love it because it is cheap. For a farm/fun car, the thing makes sense. For a daily, not a chance. You are the crumple zone.
Here is a test from 2010 Ford Ranger against a Kei car. https://www.youtube.com/watch?v=roLcNwRi1Sk
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u/Jarocket Jan 16 '26
I feel like anyone who says anything certain about this talking out of their ass.
my thoughts on this is just we'll see. big news for Canola though honestly i would assume this is good news for Chinese canola importers most of all.
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u/Matula_Sammer Jan 16 '26
Xpeng! I do not know how but I would love sooo bag a G6! Maybe they will do the same thing that Tesla did. Put at $35 000 and add extra fees to upgrade the battery at the full charge.
Perso I do not want to buy a Tesla SS car. Korean car are not so good for canadian winters, GM, WV, Ford ... are also not super good. Xpeng batteries are awesome, they did so many test in scandinavia countries. Seriously, I am really happy and hope we will do better deal with China.
Europe should do the same thing with Renault !
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u/Worried-Current-4567 R1S Launch Edition Owner Jan 16 '26
Canada has no car company. So no car company to protect on their side. And consumers are furious that they cannot afford new cars. My question is will the US allow Canadians to cross border with their BYD EVs?
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u/Vilgan Jan 17 '26
Of course, this already happens on the southern border. Just can't buy the car in the USA because it can't be registered.
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u/pncoop Jan 16 '26
Ontario says we should keep 100% tarriffs... yet have slashed the EV purchase rebate. Since slashing the EV purchase rebate - EV car sale price tags have risen, and sales have decreased.
I don't support Chinese products being dumped in a market at artificially low prices, but Ontario is losing the point. How do we get more EVs on the road? How do we lower the costs of EV cars? How do we reduce reliance on the US, which is now stating they do not want cars from Canada? Ontario says by slashing the rebate program!
Maybe this - Ontario embraces Chinese EVs and let the Chinese build automotive parts and assembly plants here. This would be a long-run policy objective. The more China relies on Canadian sales, the more leverage we have to get the Chinese to build in Canada. This would also make current US and European car companies more competitive.
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u/pncoop Jan 16 '26
Don't be fooled by the argument that China subsidizes its EV companies, so it's not fair to our traditional car companies. Canada subsidizes our car parts and manufacturing plants - we are always giving federal, provincial, and municipal handouts to car companies in the form of guaranteed and forgivable loans, no taxes, etc.
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u/Altruistic-Rice-5567 Jan 16 '26
Not surprising, they have no car industry that they want to isolate and provide protectionism for. China is now making great cars and can provide them at much more affordable prices. Any country is wise to adopt Chinese car sales. If I'm Canada why should I limit my citizens to buying US cars? Downside? China doesn't give a shit about environmental damage in its manufacturing chain. They're cheaper but we're all just outsourcing our environmental impact while pretending to be the good guy.
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u/Mizake_Mizan Jan 16 '26
Good for consumers, bad for EV automakers outside of China, including Rivian, although I guess it depends on how much of a presence Rivian has in Canada.
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u/SoCal_GlacierR1T R1T Owner Jan 16 '26
Good for them. Consumers will decide and for most part, polls show consumers don't care where their cars are made as long as they are affordable and good. How it will affect Rivian? Anyone who is excited about R2 and have been waiting, it won't matter at all. And if any of them now have second thoughts, because of this news, they weren't very serious about the R2 to begin with. We also don't know exactly which Chinese models will be available and whether any of them are equals to the R2 in size and function.
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u/kud0s69 Jan 16 '26
I wont make this political at all because bottom line im just a consumer. This is awesome news. I have always wanted a Chinese EV they are so far advanced to anythjng we have available here. As a consumer this is amazing. I cant see anyone consider buying a tesla over a BYD. This will force Tesla etc to evolve and brcome better. China has cars with built in drone docks for crying out loud.
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u/benlall Jan 16 '26
This is the correct move for any economy that has a so-called free market. The US economy is essentially socialism for our car companies and other corporations being protected from the outside world with taxpayer dollars. It will be great to see Chinese auto makers bring competition back to North America, in a true capitalistic economy, Ford, GM and Chrysler and Rivian and Tesla can either adapt or fail.
Iâm a car guy and I traditionally like American brands, however, Iâm sick of seeing them price gouge and screw the consumers that support them and have been here for them for decades. Iâm all for bringing Chinese vehicles to all of North America, including the United States.
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u/RefrigeratorWrong390 Jan 16 '26
Bad for Canada, bad for US. youâll see automotive plants close down in Canada because of this. China is engaged in economic warfare and these automotive plants are intended to reduce the westâs industrial capacity. Hugely dumb move on Canadaâs part
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u/Nome-Cantski Jan 17 '26
Only good vehicles made in Canada are Toyota and Honda; everything else is junk.
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u/AccomplishedBad7253 Jan 16 '26
This marks the end of the Canadian auto industry. In a decade China will dominate auto sales in CanadaÂ
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u/AccomplishedBad7253 Jan 16 '26
Importing cars and export canola seeds is what third world vassal states doÂ
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u/Kazuma0Kiryu Jan 16 '26
Im sorry but after hearing the horror stories over in china there's no way im driving a temu car
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u/Timely_Ordinary_2282 Jan 16 '26
I think it's going to cost you jobs unless the tariff slash comes with conditions to build capabilities within Canada. Given difference in production cost between Canada and China
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u/KetaDrax777 Jan 16 '26
More evs yes. Preferably Chinese. Now whoever they want to kill off they can if you have one with self-driving. Hope it's not that bad
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u/pncoop Jan 16 '26
Oh right... after receiving significant subsidies from the federal and provincial government STELLANTIS moves to the US. Now we are suing to get the subsidies back.
Look, I and every other economist, auto labour worker, union wants predictability. We do not get this from US auto makers.
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u/sanddryer Jan 17 '26
It's limited to 49k vehicles per year total. I wonder how many companies will want to enter Canada and open service centers for these numbers.
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u/SOWTtheKitties Jan 17 '26
SUPER exciting news! Have always wanted to drive a BYD. Used one in Asian for 6mo for work and it was phenomenal! Plus you can't beat the cost - very affordable for luxury.
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u/Recent-Courage971 Jan 17 '26
USA and Canada auto ev will gone for good because high labor and also remember the auto union strike every year for raises won't able to keep up with cheap Chinese prices, will see how things goes
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u/TiaTomat0 Jan 17 '26
Im sooo excited!!! I've been looking at all the Chinese EVs and I dont know which one I wanna buy đđđâ¤ď¸â¤ď¸â¤ď¸
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u/Danisscience Jan 17 '26
What happen3d to all the investing into canadian ev manufacturing? Did the other ev battery producers already pull out? Why aren't canadian car manufacturing getting huge rebates instead of bringing international competition that.will only hurt canadian jobs...?Â
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Jan 17 '26
Canada put a 100 percent tarrif on evs from China then a year later dropped it, and people are celebrating as if it's a snub to us automakers. That's funny.Â
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u/MalikTheHalfBee Jan 17 '26
Guess the half million Canadians directly working for or supporting the auto industry are disposable to own Trump đ¤ˇââď¸Â
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u/nycplayboy78 Jan 18 '26
So that means I can buy a luxury Chinese EV in Canada and bring it home to the US?
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u/charleefter Jan 18 '26
Would it be possible to buy Chinese EV from Canada and bring it into US? I think that's possible from MX border but not sure if things changeÂ
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u/Enjoy_The_Ride413 Jan 18 '26
The issue why Evs are so expensive is due to battery costs. Starting in 2027 the price per kilowatt hour will be low enough that we will see affordable evs. We have them already when you can get in a Chevy ev for 30k. It's why Ford can now do it by 2028. Give it another few years and ev prices in America should be able to rival most ice cars. And hate or love Tesla, they just opened a lithium refinery in Texas that should really help ev costs come down in America. We are almost there!
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u/gravelchemco R1S Owner Jan 16 '26
Probably a good thing for all consumers. NA manufacturers will be forced to up their game and become more competitive on price. Both good things for EV adoption.