TORONTO- Unifor is urging the federal government to maintain its 100% surtax on electric vehicles imported from China, warning that lifting the measure would deal a devastating blow to Canada’s auto industry at a time of unprecedented crisis.

“Canada’s auto industry is facing an existential crisis, with U.S. tariffs threatening current and future product investments, including electric vehicles,” said Unifor National President Lana Payne. “Lifting tariffs on China, will make a bad situation far worse, if Canada becomes a dumping ground for cheap, unfairly subsidized imports.”

Unifor’s submission to the government’s Section 53 China Electric Vehicle Surtax Review underscores that unfair competition from Chinese automakers – backed by massive state subsidies, labour rights abuses, and coal-powered production – poses an immediate threat to Canadian jobs and the country’s automotive supply chain, including the steel and aluminum sectors.

Since 2020, Canada has positioned itself for growth in the automotive sector by securing investments in vehicle assembly programs, battery production, and critical mineral processing. Unifor warns that recent disruptions, from U.S. tariffs on Canadian-built vehicles, to policy rollbacks on EV supports, to rising Chinese import penetration, threaten to reverse these hard-won gains.

“As of August 2025, one-third of our members at Detroit Three facilities in Canada are on layoff, with three assembly plants sitting idle,” said Payne. “At a time when auto workers are facing layoffs and uncertainty, lifting the surtax would be nothing short of a self-inflicted wound.”

Unifor emphasized that, along with efforts to secure a zero-tariff resolution to the U.S. tariff dispute, Canada must remain aligned with its CUSMA partners regarding Chinese vehicle and parts imports. The United States maintains combined tariffs of 127.5% on Chinese EVs and is preparing restrictions on Chinese “connected car” technology by 2027. Mexico recently raised its tariffs to 50% in response to surging imports that now represent 70% of its EV market.

“There is no strategic advantage for Canada to go it alone,” Payne said. “We need to work constructively to protect North American auto jobs and supply chains.”

In its submission, Unifor recommended that the federal government:

• Maintain the existing 100% surtax on imported Chinese EVs for an additional 24 months.
• Extend surtaxes to strategic EV and battery-related components.
• Reinstate and expand federal EV rebate programs, with conditions to prioritize Canadian- and North American-built vehicles.
• Strengthen enforcement against goods produced with forced labour.

“Workers have done everything asked of them to build Canada’s auto industry for the future,” added Payne. “Now it’s time for government to stand firm, defend our industry, and ensure our net-zero future is made in Canada with good, union jobs at its core.”